Crypto Hacker Turns Good: Returns Stolen $42 Million to GMX

From Infamy to Integrity: The $42 Million Turnaround

In a surprising twist within the crypto world, a hacker who recently pulled off a heist on the decentralized crypto perpetuals exchange GMX is now switching to the great side. This individual managed to steal a jaw-dropping $42 million, but in an unexpected move, they’ve chosen to return the funds and claim a hefty bounty as a reward for his or her change of heart.

The Heist and Its Resolution

GMX took to the social media platform X to update the community on the incident. They confirmed that the hacker, who had targeted their Arbitrum-based liquidity pool earlier within the week, is returning the stolen assets and receiving a $5 million reward in exchange for his or her newfound cooperation.

Securing the Funds

Thankfully, the potential lack of $42 million from the GLP holders was averted. After the hacker accepted the reward, the remaining funds safely made their option to the GMX Security Multisig. Now, the GMX team is difficult at work devising a distribution plan, which they’ll soon present to their decentralized autonomous organization, or DAO.

The Technical Side: Understanding the Exploit

The hacker had executed a re-entrancy attack, a classic trick on the planet of smart contracts. This form of attack exploits a vulnerability that happens when a sensible contract calls one other contract before updating its own state, leaving a window open for malicious activity.

The Market’s Reaction

News of the funds’ protected return boosted GMX’s market performance significantly. The digital asset saw an 18.4% surge, trading at $13.36 on the time of writing. It’s protected to say this development has brought a breath of fresh air to the community.

Image Credit: dailyhodl.com