This week marked a turning point for GMX Exchange as it managed to restore user activity after a significant hacking incident that involved the theft of $40 million.
How the Hack Occurred
GMX's team revealed that the hacker exploited a vulnerability within the OrderBook contract. By manipulating prices in Bitcoin short positions, they artificially inflated the value of GLP liquidity, allowing substantial withdrawals totaling over $40 million in various cryptocurrencies.
Actions Taken After the Hack
Following the attack, GMX issued a blockchain message offering the hacker a 10% settlement, equating to $5 million, in exchange for returning the stolen funds. The hacker agreed and began the refund process. GMX's team actively collaborated with partners to track fund movements and communicate with users.
Market Reaction
The crypto market responded swiftly to the incident. The price of GMX's token, which had fallen to $10.45, surged by 17% following the refund announcement. Since its launch on Arbitrum One in 2021, GMX has processed over $306 billion in trading volume.
The GMX incident highlights the need for robust security measures and illustrates how quickly user trust can be restored amid a crisis.
