A hacker responsible for exploiting a vulnerability in the decentralized exchange GMX v1 and making off with approximately $40 million in cryptocurrencies has begun returning the stolen assets after accepting a reward offered by the GMX team. This incident underscores the ongoing challenges in the cryptocurrency space regarding security and compliance.
Hacker Returns Funds
As of the time of writing, the hacker has started transferring some of the stolen funds back to GMX. Following a message on the blockchain where the attacker acknowledged the offered bounty, it was reported that about $9 million in Ether (ETH) was sent to the specified address by GMX. This address has been marked as “GMX Exploiter 2” on various blockchain tracking platforms.
Additionally, two separate transfers of stablecoins, amounting to $10.5 million, have also been made. The total returned so far is around $20 million, which represents half of the stolen assets. The initial exploit, which occurred on Wednesday, specifically targeted a liquidity pool on GMX v1, a perpetual trading protocol on the Arbitrum Layer 2 network, manipulating the price of GLP tokens to drain a variety of cryptocurrencies from the platform.
GMX Offers $5 Million Bounty
In response to the incident, GMX has recognized the technical sophistication of the exploit and has issued a $5 million reward for the return of the remaining funds. In an official post on X (formerly Twitter), GMX directly addressed the hacker, categorizing the bounty as a “white hat” incentive, which would allow the hacker to use the funds legally if most of the stolen assets were returned.
“You successfully executed the exploit; your capabilities to do so are clear to anyone reviewing the exploit transactions,” GMX stated. “The $5 million reward remains available.”
The GMX team emphasized that the bounty aims to eliminate legal and practical risks associated with utilizing stolen cryptocurrencies. They also offered to provide proof of the funds’ origin if required, enabling the exploiter to pass compliance checks or audits. Moreover, GMX issued an on-chain ultimatum, threatening legal action within 48 hours if the funds are not returned.
Meet William, a proud Bethel University alumnus with a fervent passion for lifestyle and culture topics. His keen interest doesn’t stop there; he’s also deeply engrossed in current events of all kinds. William dedicates himself wholeheartedly to this site, thriving on the collaborative energy he shares with Suzanne, his long-standing partner in crime.
Having navigated their university courses side by side for years, their teamwork on the site is nothing short of dynamic. Together, they bring a unique blend of insights, proving that two heads are indeed better than one in delivering compelling content.
