In a surprising turn of events, the hacker responsible for stealing over $40 million in cryptocurrency from the decentralized exchange GMX has started returning the funds. The exploit, which occurred on July 9, 2025, targeted GMX's V1 GLP liquidity pool, resulting in a massive loss of assets including Ethereum (ETH) and Frax (FRAX). The GMX Security Committee confirmed the recovery of $37.5 million in stolen crypto on July 11, 2025.
The return of the funds follows a 10% white hat bounty offer made by GMX to the hacker. This deal, which amounts to approximately $4-5 million, was proposed in exchange for the safe return of the remaining assets within a 48-hour window. Reports indicate that the hacker has already returned a significant portion, including 9,000 ETH and 10.5 million FRAX, showcasing a rare instance of negotiation in the crypto hacking space.
The attack exploited a vulnerability in GMX’s V1 pool, allowing the hacker to drain substantial amounts of Bitcoin (BTC), ETH, USDC, and other tokens. Funds were reportedly laundered across Ethereum and Arbitrum networks before the bounty agreement was reached. GMX clarified that its V2 platform remained unaffected by the exploit.
This incident highlights the ongoing security challenges faced by decentralized finance (DeFi) platforms. While the return of funds is a positive outcome, it raises questions about the vulnerabilities in liquidity pools and the effectiveness of current security measures in the DeFi ecosystem.
GMX’s swift response and willingness to negotiate have been praised by some in the crypto community as a pragmatic approach to mitigating losses. However, it also underscores the importance of robust security audits and proactive measures to prevent such exploits in the future.
As the situation unfolds, the crypto industry watches closely to see if the remaining stolen funds will be returned and whether this case sets a precedent for handling future hacks through bounty negotiations. For now, GMX users and stakeholders can breathe a sigh of relief with the recovery of a significant portion of the stolen assets.
Maria Lourdes
