GMX V1 GLP Pool on Arbitrum Hit by $40M Attack; Trading Suspended to Protect Users

On July 9, GMX disclosed a security breach targeting the GLP pool within GMX V1 on the Arbitrum network, resulting in the unauthorized transfer of approximately $40 million in tokens to an unidentified wallet. The incident has prompted an immediate investigation focused on pinpointing the breach’s origin and facilitating asset recovery efforts. In response, the GMX team has temporarily disabled trading functionalities on GMX V1 across both Arbitrum and Avalanche platforms, alongside halting GLP minting and redemption processes, to mitigate further risks and safeguard user assets. It is important to emphasize that this exploit is confined exclusively to GMX V1’s GLP pool, with no impact on GMX V2, its associated markets, liquidity pools, or the GMX token itself. Stakeholders are advised to monitor official channels for updates as the team prioritizes resolution and enhanced security measures.