• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

GMX Loses $42 Million in Hack Targeting GLP Pool

user avatar

by Giorgi Kostiuk

5 hours ago


On July 9, 2025, the decentralized exchange GMX was hit by a hack that resulted in the theft of $42 million from its GLP liquidity pool on Arbitrum. The incident exposes vulnerabilities within the DeFi space.

The Exploit and Role of CrowSwap

The attacker exploited a reentrancy vulnerability to mint unauthorized GLP tokens, draining various assets such as ETH, LINK, UNI, DAI, USDC, FRAX, and WBTC. The hacker utilized flash loans to manipulate the GMX GLP pool, extracting $32 million from Arbitrum and bridging $9.6 million to Ethereum. On-chain data indicates that the hacker converted $9.75 million in USDC and $1.34 million in DAI into ETH via CrowSwap, raising questions about the platform’s role in facilitating the laundering of stolen funds.

GMX’s Response

In response to the incident, GMX halted V1 trading and disabled GLP minting/redemption on Arbitrum and Avalanche to limit further losses. The team offered a 10% white-hat bounty ($4.2 million) if 90% of the funds are returned within 48 hours and promised to conduct a detailed post-mortem. The hack led to a more than 20% drop in GMX’s token price, falling to $11.11.

Implications for DeFi

The GMX exploit highlights ongoing security challenges in DeFi, particularly around smart contract vulnerabilities and cross-chain risks. CrowSwap’s involvement amplifies concerns regarding the susceptibility of decentralized exchanges to misuse. As investigations continue, the DeFi community awaits updates on fund recovery and CrowSwap’s response to its role in the laundering process.

The GMX incident serves as a vital lesson on the need for improved security within the DeFi environment and the importance of robust measures against fraud on decentralized platforms.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Stablecoin Issuer Agora Secures $50 Million to Expand AUSD Offering

chest

Agora has raised $50 million to develop its AUSD offering amidst increasing interest in dollar-backed stablecoins.

user avatarGiorgi Kostiuk

Grok4 Outperforms OpenAI o3 in AI Benchmarks

chest

Grok4 by xAI's Elon Musk surpasses OpenAI's o3 in key metrics. Discover what this means for the market.

user avatarGiorgi Kostiuk

Ant Group Considers Supporting USDC on Its Blockchain Platform

chest

Ant Group, the Chinese fintech giant, may support USDC on its blockchain platform, potentially reshaping the digital transaction landscape in China.

user avatarGiorgi Kostiuk

Bitcoin Reclaims Its Brand and Predictions by Max Keiser

chest

Bitcoin has reached a historic high over $112,000. Max Keiser sets a new deadline for his forecasted level of $220,000.

user avatarGiorgi Kostiuk

Binance Introduces First Sharia-Compliant Investment Product

chest

Binance unveils Sharia Earn, a product aligned with Islamic financial principles for global investors.

user avatarGiorgi Kostiuk

10X Capital and YZi Labs Launch BNB Treasury Company for U.S. Investors

chest

10X Capital collaborates with YZi Labs to create BNB Treasury Company, providing U.S. investors access to the BNB token.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.