GMX Suffers $42M Exploit, Pauses Trading Operations

• Lyla Velez
• July 11, 2025
• News
• 0 Comments

Exploit Details and Immediate Reactions

The GMX exchange encountered a major exploit on its GLP liquidity pool hosted on Arbitrum, where attackers extracted $42 million across various tokens. Responding to the breach, trading operations were halted to secure remaining assets.

Security Measures and Investigation

Primary action involved ceasing GLP trading and minting on Arbitrum and Avalanche as core contributors assessed the vulnerability. The security firm Cyvers tracked the exploit’s funds flow, including routes through Tornado Cash.

“Trading on GMX v1, and the minting and redeeming of GLP, have been disabled on both Arbitrum and Avalanche to prevent any further attack vectors and protect users from additional negative impacts. Core contributors are investigating how the manipulation occurred, and what vulnerability may have enabled it.”

Impact on GMX and Its Users

Financially, the attack significantly reduced GMX’s Total Value Locked, which stood at approximately $500 million. User confidence saw a decline as the exchange’s governance token plummeted over 25% in value.

Long-term Implications and Future Outlook

Long-term implications underscore potential regulatory scrutiny and challenges in maintaining investor trust. Historical trends from previous exploits in decentralized finance suggest increased focus on improving security measures will be essential for future resilience. Insights suggest the potential for stricter regulatory frameworks, increased technological innovation, and a drive towards enhanced security protocols. Industry experts anticipate a push for thorough audits and robust risk mitigation strategies to rebuild confidence.