Crypto Exchange GMX Recovering from Major Heist

GMX, a crypto perpetuals exchange, recently faced a significant security breach, with hackers siphoning off tens of millions of dollars. In an unexpected turn, the platform is now recovering the stolen funds and is turning the situation around by returning them and earning rewards.

According to a recent post on the social media platform X, GMX reported that hackers stole approximately $42 million in crypto assets from a liquidity pool based on Arbitrum (ARB) earlier this week. Remarkably, the platform has not only repaid the loss but is also collecting $5 million in rewards for its efforts.

“A potential exploitable amount of $42 million has been secured, belonging to GLP holders. After compensating users with $5 million, the remaining funds are now secured at GMX Security Multisig,” GMX stated.

They added, “Contributors are working on proposed distribution plans for presentation to GMX DAO and will soon share more information.”

The breach reportedly happened on July 9, with the hackers moving some of the funds to untraceable wallets. Initially, GMX confirmed that the exploit was limited to GMXV1, asserting that its V2 market, liquidity pools, and internal ecosystem weren’t impacted.

In their incident report, GMX explained that the exploit involved hacking smart contracts by taking advantage of a vulnerability that occurred when a contract called another entity before it updated itself.

At the time of writing, GMX’s digital assets were trading at about $13.36, which marks a notable increase of 18.4% over the previous 24 hours.