Breaking news! GMX V1 platform confirms it has been hacked, resulting in a loss of 40 million dollars and a big dump in coin prices.

Today (10) in the Asian early trading session, the GMX token on the DEX fell nearly 15% as the exchange's V1 platform and GLP pool on Arbitrum suffered a loss of 40 million dollars due to an attack, while its V2 platform remained unaffected.

Hackers stole $40 million from the V1 platform, causing panic that led to a fall in the GMX price

The decentralized exchange GMX was attacked by hackers on Wednesday, following reports that its V1 platform based on Arbitrum was breached, resulting in a loss of 40 million USD. This incident also affected GMX V1 liquidity providers GLP, but its native Token, the upgraded V2 platform, other related markets, and liquidity pools were unaffected.

GMX stated in a post on X on Wednesday: "The vulnerability will not affect GMX V2, its markets, liquidity pools, or GMX tokens themselves. According to existing information, the vulnerability is limited to GMX V1 and its GLP pool."

According to Lookonchain data, hackers bridged $9.65 million of stolen funds to the Ethereum network and exchanged it for DAI and ETH. Therefore, the exchange stated that trading on GMX V1 has been disabled, as well as the ability to mint and exchange GLP on the Arbitrum and Avalanche networks, to prevent further attacks.

GMX added: "Our main focus is to recover and identify the root cause of the problem."

After the incident, the on-chain security company SlowMist discovered that the design flaws in the architecture of the exchange were the main cause of the security vulnerabilities.

SlowMist stated that the vulnerability mainly revolves around how GMX V1 handles short position operations, exposing a weakness that was ultimately used to manipulate Token pricing and siphon funds from the protocol.

SlowMist wrote in Wednesday's X post: "The root cause of this attack lies in the design flaw of GMX V1, where short position operations immediately update the global average short price."

(Source: X)

According to reports, GMX has offered a 10% white hat bounty to the exploiters, urging them to "quickly and ethically resolve the issue." The team stated that if the stolen funds are returned within 48 hours, they will take no further legal action.