Hacker Returns Stolen Funds from $40M GMX Exploit
The perpetrator behind the $40 million exploit on GMX‘s decentralized exchange has started returning stolen cryptocurrency after accepting a $5 million white hat bounty from the GMX team. Blockchain security firm PeckShield confirmed the fund return through an onchain message.
Understanding the GMX Exploit
The attack targeted a liquidity pool on GMX v1, the platform’s first version deployed on Arbitrum. By exploiting a design flaw in GLP tokens, the attacker drained multiple crypto assets from the exchange.
Key Details of the Incident
- Total stolen: $40 million in cryptocurrency
- Amount returned: Approximately $20 million so far
- Platform affected: GMX v1 on Arbitrum
- Token involved: GLP
Fund Recovery Progress
The hacker has returned about $20 million in assets, including Ether (ETH) and FRAX tokens. This followed the GMX team‘s offer of a white hat bounty and their threat of legal action within 48 hours if funds weren’t returned.
GMX Team’s Strategic Response
Recognizing the hacker’s technical skills, the GMX team proposed a $5 million bounty for returning the stolen funds. They classified this as a white hat payment, ensuring the hacker could use it without legal concerns. The team also offered to verify the funds’ origin if requested.
Legal Considerations
The GMX team established clear terms: return 90% of funds and keep 10% as a bounty, or face potential legal consequences. This balanced approach encouraged cooperation while maintaining the platform’s security standards.
