The GMX protocol halted buying and selling on GMX V1 after a liquidity pool suffered an exploit on Wednesday, resulting in $40 million in funds being stolen and despatched to an unknown pockets.
GMX V1 is the primary model of the GMX perpetual trade deployed on the Arbitrum community. The attacked pool gives the liquidity supplier of the GMX protocol with a basket of underlying digital property together with Bitcoin (BTC), Ether (ETH) and stablecoins, according to the GMX crew.
The protocol has additionally introduced a brief suspension in minting and redemption of GLP tokens on each Arbitrum and the layer-1 Avalanche community to guard in opposition to any further fallout from the cybersecurity exploit.
Customers of the platform have been instructed to disable leverage and alter their settings to disable GLP minting.
“The exploit doesn’t have an effect on GMX V2, its markets, or liquidity swimming pools, nor the GMX token itself. Primarily based on the obtainable data, the vulnerability is proscribed to GMX V1 and its GLP pool,” the crew mentioned.
Blockchain safety firm SlowMist attributed the exploit to a design flaw that allowed hackers to govern the GLP token value by the calculation of the overall property below administration.
Hacks and cybersecurity crimes proceed to be main ache factors within the crypto business, affecting each centralized platforms and decentralized exchanges. The hacks have induced billions of dollars in cumulative losses and discouraged new members from adopting crypto because of the worry of victimization by subtle risk actors.
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Crypto hacks proceed to be a characteristic of the digital asset panorama
Losses from crypto hacks reached $2.5 billion within the first half of 2025, with roughly $1.4 billion in stolen funds ensuing from the Bybit hack in February.
In June, Iranian crypto trade Nobitex fell victim to a cyberattack from a pro-Israeli hacker group known as Gonjeshke Darande.
The hack induced over $81 million in losses for the Iranian trade, which was compelled to pause companies quickly to mitigate the results of the hack.
The US Treasury’s Workplace of Overseas Property Management (OFAC) announced sanctions on Tune Kum Hyok, a gaggle of North Korea state-affiliated hackers, on Wednesday.
Tune Kum Hyok infiltrated several crypto companies and protection contracting companies, intending to use these organizations from the within with each social engineering scams and cybersecurity breaches.
Journal: North Korea crypto hackers tap ChatGPT, Malaysia road money siphoned: Asia Express
