The GMX protocol halted buying and selling on GMX V1 after a liquidity pool suffered an exploit on Wednesday, resulting in $40 million in funds being stolen and despatched to an unknown pockets.
GMX V1 is the primary model of the GMX perpetual alternate deployed on the Arbitrum community. The attacked pool gives the liquidity supplier of the GMX protocol with a basket of underlying digital property together with Bitcoin (BTC), Ether (ETH) and stablecoins, according to the GMX staff.
The protocol has additionally introduced a brief suspension in minting and redemption of GLP tokens on each Arbitrum and the layer-1 Avalanche community to guard towards any extra fallout from the cybersecurity exploit.
Customers of the platform had been instructed to disable leverage and alter their settings to disable GLP minting.
“The exploit doesn’t have an effect on GMX V2, its markets, or liquidity swimming pools, nor the GMX token itself. Based mostly on the accessible data, the vulnerability is restricted to GMX V1 and its GLP pool,” the staff stated.
Blockchain safety firm SlowMist attributed the exploit to a design flaw that allowed hackers to control the GLP token value via the calculation of the entire property beneath administration.
Hacks and cybersecurity crimes proceed to be main ache factors within the crypto trade, affecting each centralized platforms and decentralized exchanges. The hacks have brought about billions of dollars in cumulative losses and discouraged new contributors from adopting crypto because of the worry of victimization by subtle risk actors.
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Crypto hacks proceed to be a function of the digital asset panorama
Losses from crypto hacks reached $2.5 billion within the first half of 2025, with roughly $1.4 billion in stolen funds ensuing from the Bybit hack in February.
In June, Iranian crypto alternate Nobitex fell victim to a cyberattack from a pro-Israeli hacker group referred to as Gonjeshke Darande.
The hack brought about over $81 million in losses for the Iranian alternate, which was compelled to pause companies quickly to mitigate the results of the hack.
The USA Treasury’s Workplace of International Belongings Management (OFAC) announced sanctions on Music Kum Hyok, a gaggle of North Korea state-affiliated hackers, on Wednesday.
Music Kum Hyok infiltrated several crypto companies and protection contracting companies, intending to use these organizations from the within with each social engineering scams and cybersecurity breaches.
Journal: North Korea crypto hackers tap ChatGPT, Malaysia road money siphoned: Asia Express
