Recently, the GMX V1 protocol suspended trading after its liquidity pool was hacked, resulting in a substantial loss of funds.
Reasons for GMX V1 Trading Suspension
The GMX V1 protocol, the first version of the GMX exchange on the Arbitrum network, announced a trading halt after one of its liquidity pools was hacked, leading to $40 million in theft. The team advised users to disable leverage and alter settings to prevent further manipulations.
Identified Vulnerability and Its Consequences
Investigations revealed that the vulnerability was due to a design flaw that allowed hackers to manipulate the price of the GLP token through calculations of total assets under management. The blockchain security firm SlowMist confirmed this, indicating the hack only affected GMX V1 and its GLP pool.
Ongoing Threats in the Cryptocurrency World
Cybercrime remains a significant issue in the crypto industry. In the first half of 2025, losses from hacks reached $2.5 billion. Incidents like the hack of the Iranian crypto exchange Nobitex, which lost over $81 million, underscore the need for enhanced security measures on platforms.
The incident with GMX V1 serves as a reminder of the risks associated with cyber threats in the cryptocurrency space and the importance of increasing security levels to protect user funds.
