GMX Protocol Faces $40 Million Exploit, Suspends Trading on V1
The GMX protocol halted trading on GMX V1 following a big exploit on Wednesday, which resulted in $40 million being stolen and transferred to an unknown wallet. This attack targeted a liquidity pool on the Arbitrum network.
Understanding the Incident
GMX V1, the primary version of the GMX perpetual exchange, was affected. The compromised pool, as explained by the GMX team, provides liquidity with a combination of essential digital assets like Bitcoin (BTC), Ether (ETH), and stablecoins.
In response, the protocol has temporarily stopped the minting and redemption of GLP tokens on each the Arbitrum and Avalanche networks to forestall further risks. Users are advised to disable leverage and adjust settings to stop GLP minting.
“The exploit does not affect GMX V2, its markets, or liquidity pools, nor the GMX token itself. Based on the available information, the vulnerability is limited to GMX V1 and its GLP pool,” stated the GMX team.
According to blockchain security company SlowMist, the exploit was as a consequence of a design flaw that allowed the manipulation of the GLP token price via the calculation of total assets under management.
Crypto Hacks: A Persistent Threat
Recent Major Hacks
Crypto hacks have been a recurring issue within the digital asset space. In the primary half of 2025 alone, losses have reached $2.5 billion, with a big $1.4 billion stemming from the Bybit hack in February.
In June, the Iranian crypto exchange Nobitex suffered a cyberattack from a pro-Israeli hacker group, Gonjeshke Darande, leading to over $81 million in losses. The exchange needed to pause services to deal with the breach.
Sanctions and Responses
The United States Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Song Kum Hyok, a gaggle of North Korea state-affiliated hackers. This group infiltrated several crypto firms and defense contractors, exploiting them through social engineering and cybersecurity breaches.
Image Credit: cointelegraph.com
