Key Takeaways
- GMX decentralized exchange suffered a reported security breach resulting in a $42 million loss.
- A re-entrancy vulnerability allowed the abnormal minting of GLP tokens during the exploit.
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One of the top decentralized perpetual exchanges, GMX, appears to have fallen victim to an exploit that drained more than $40 million and triggered a sudden decline in the price of its native token, as reported by blockchain security entity PeckShield.
According to data from DeBank first flagged by numerous X users, the suspected threat actor may have employed a re-entrancy exploit to abnormally mint GLP, the platform’s liquidity token. The issue is now under investigation.
The exploit triggered a sharp selloff in the GMX token, which plunged as news spread across CT and security researchers began tracing the drain.
GMX has yet to issue an official statement.
This is a developing story. Please come back for further updates.
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