GMX Hacker Returns $40M After $5M White‑Hat Bounty

Sammy Salmela
Jul 12, 2025
2 min read

Blockchain hacker sending funds back to GMX after exploit

Article with AI Analysis:

Date: July 11, 2025

Source: Cointelegraph

Introduction

A hacker exploited a design flaw in GMX v1’s DeFi protocol, stealing around $42 million. After GMX offered a $5 million white‑hat bounty and legal immunity, the exploiter began returning the funds starting with FRAX and Ether to the addresses specified by GMX.

Exploit and Vulnerability

On July 9, 2025, GMX’s V1 DEX on Arbitrum was hit by a reentrancy attack targeting the execute Decrease Order function. The hacker manipulated GLP pricing and drained the vault, stealing roughly $42 million worth of ETH, FRAX, USDC, WBTC and other tokens.

White‑Hat Bounty & Return of Funds

GMX responded quickly halting trading and offering a 10% white‑hat bounty ($5 million) and no legal action if 90% + of funds were returned within 48 hours. Shortly thereafter, the hacker posted on‑chain:

“Ok, funds will be returned later.”

By July 11, ~$20 million in ETH and FRAX had been returned; soon after, the total returned reached approximately $40.5 million.

Remaining Funds

The hacker converted some stolen tokens into 11,700 ETH (~$35M at the time), leaving a net $3 million profit after returning the original $32 million in ETH (and bounty). All other stolen assets were returned.

AI‑Powered Sentiment Analysis

Our AI analysis reveals:

Sentiment Score: –0.57 overall negative, reflecting the stress of the hack
Financial Sentiment: –0.47 market concerns and loss
Polarity Score: 0.12 slightly positive due to restitution
Subjectivity Score: 0.311 moderately factual with some opinion

These metrics indicate a cautious tone: acknowledging the seriousness of the breach while highlighting the constructive outcome of the white‑hat deal.

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Disclaimer

This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.