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Decentralized exchange GMX hacked, trading temporarily halted

The decentralized exchange GMX has temporarily halted all trading and the minting of new tokens.

By Mike Hesp
• 2 min read
Decentralized exchange GMX hacked, trading temporarily halted

The decentralized exchange GMX has temporarily halted all trading and the minting of new tokens. Reason: a targeted hack attack on the protocol.

According to the team behind GMX, a liquidity pool from the platform's first version (GMX V1) was the target. The newer version, GMX V2, and the GMX token itself, according to the developers, were untouched.

The attack reportedly saw about $40 million in crypto assets looted. The stolen funds were moved to an unknown wallet.

“Trading on GMX V1 and the issuing and redeeming of GLP have been disabled on both Arbitrum and Avalanche to prevent further attack vectors and protect users from additional harm,” according to an official statement on X (formerly Twitter).

Blockchain security firm SlowMist View post on X said a design flaw in the system enabled the attack. The vulnerability allowed the attackers to artificially manipulate the price of GLP.

GMX's developers are still investigating the incident. The exact cause is not yet known View post on X.

It's another hard hit for the sector. In the first half of the year, hacks in crypto have caused about $2.5 billion in losses.

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