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GMX halts trading and GLP minting after a $40 million exploit on its V1 platform, highlighting ongoing cybersecurity challenges in the crypto sector.
Author: Akshat Thakur
Published On: Wed, 09 Jul 2025 19:48:45 GMT
July 10, 2025 – Decentralized exchange GMX has temporarily halted trading on its GMX V1 platform after a critical exploit led to the theft of approximately $40 million in assets from its liquidity pool. The incident marks another major cybersecurity breach in what has been a record-breaking year for crypto-related hacks.
The exploited pool, used for the minting and redemption of GLP tokens, held a basket of assets including Bitcoin, Ether, and stablecoins. Following the attack, GMX immediately paused all trading and GLP minting on both the Arbitrum and Avalanche networks as a precaution.
“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,” the team clarified in an update.
Blockchain security firm SlowMist attributed the attack to a design flaw in the way the protocol calculated the total assets under management, allowing the attacker to manipulate the price of the GLP token.
The GMX breach adds to an already heavy toll from crypto exploits this year:
In total, crypto hacks have caused over $2.5 billion in losses in the first half of 2025 alone, reflecting the persistent cybersecurity vulnerabilities across both centralized and decentralized platforms.
As the crypto industry continues to grow, security remains one of the greatest challenges to broader adoption. The GMX incident underscores the importance of rigorous auditing, real-time monitoring, and contingency planning for all DeFi projects.
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Real voices. Real reactions.
🚨 Reports of a major exploit on GMX are emerging, ~$42M reportedly drained via a re-entrancy vulnerability involving GLP minting. Stay safu out there https://t.co/H4ihbwUBHz
Another day in crypto .. $GMX hacked. GMX Loss: $42M • USDC Issue: $30M unfrozen for 1h+ • Bounty: 10% for fund return @zachxbt already on it. Asking circle to freeze the funds as hackers moving funds fast. No response/ delay from circle😫. https://t.co/q0Tjk5K4NO
Looks like we’re going to see a @RektHQ article on GMX. Another re-entrancy attack, and the price of $GMX is down more than 10%. https://t.co/ZC1eLSj8yN
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