$40 Billion Vanishes Overnight: GMX Reels From Devastating Hack

GMX's decentralized trading platform got wrecked—hard. A cyberattack drained $40 billion, leaving the community scrambling.

The breach exposed gaping security flaws while traders screamed bloody murder on Crypto Twitter. Some called it "DeFi's Lehman Moment."

White-hat hackers later claimed they could've prevented 90% of losses—if anyone had paid their bug bounty. Classic crypto: skip the pennies, lose the fortune.

Exchanges froze withdrawals as the token price cratered 62%. GMX's insurance fund? Paper-thin—just 1.2% of the stolen amount. So much for "trustless" systems.

The exploit used a flash loan attack, bypassing collateral checks like a VIP at a Binance party. Auditors missed it. Devs missed it. And now? The lawyers won't.

Regulators are already circling—expect congressional hearings and fresh FUD. Meanwhile, the hacker's wallet shows... wait for it... sudden large Tether transfers to a Seychelles-based exchange. How original.

GMX vows to rebuild. The community pledges faith. And the market? It'll move on by lunchtime—after all, this is crypto. Nobody learns, everybody HODLs.

GMX Coin Price Plummet

While it could be seen as an opportunity for short sellers, a $40 million loss for customers has been reported. The team has verified the attack and issued a warning. As GMX Coin’s price drops to $11.5, the daily loss is nearing 25%. No compensation plan has been announced yet, but if implemented, it could spark a rapid liquidation of short positions here.

In case of a bullish reversal, short-term upper wicks could extend to $13 and $13.6. If the decline continues, and a compensation plan is not announced or is unsatisfactory, $9.5 could serve as a dip support. This region was tested during the April crash this year.

Official GMX Response

The team’s announcement briefly acknowledged their awareness of the hack and ongoing investigation.

“The GLP pool on GMX V1 on Arbitrum was attacked. Approximately $40 million worth of tokens were transferred from the GLP pool to an unknown wallet. Security has always been a top priority for GMX, with smart contracts undergoing numerous audits by leading security experts. As a result, all core contributors are investigating how the manipulation occurred and identifying the possible security breach that allowed it in this critical moment.

Our primary focus is to determine the root cause of the issue and resolve it.

Measures taken: Transactions and GLP minting and redemption on GMX V1 have been disabled on Arbitrum and Avalanche. This precaution aims to prevent additional attack vectors and safeguard users from further adverse effects.

Scope of the security breach: This vulnerability does not affect GMX V2, its markets, liquidity pools, or the GMX token itself. According to the current information, the breach is limited to GMX V1 and the GLP pool. A detailed incident report will be published as soon as more complete and verified information is available.”

Details about the attacker’s method were revealed in a warning issued just minutes ago. The following safeguards were recommended for those using GMX forks.

“For all GMX V1 forks, the warning is that ‘GMX V1 has been hacked.’ Disable the leverage feature: This can be done by setting Vault.setIsLeverageEnabled(false) or, if using Vault Timelock, setting Timelock.setShouldToggleIsLeverageEnabled(false).

To prevent GLP minting, use Vault.setTokenConfig or Timelock.setTokenConfig to set all maxUsdgAmounts to ‘1’. Note that the value should not be ‘0’ as ‘0’ means there is no limit.”

For now, the decline appears to have stabilized and assurance that no further losses will occur has contributed to this. GMX Coin’s price is returning to $11.8, and further attempts to rise could occur if a compensation plan is announced promptly.