A recent development in the world of cryptocurrency has seen a hacker who stole tens of millions of dollars from the decentralized crypto perpetuals exchange GMX (GMX) turning a new leaf by returning the stolen funds and collecting a bounty. This unexpected turn of events has caught the attention of many in the crypto community.
GMX took to social media platform X to announce the hacker’s change of heart. The hacker, who had previously made off with $42 million worth of crypto assets from GMX’s Arbitrum (ARB)-based liquidity pool, has now returned the funds and received a $5 million reward for their actions. This act of restitution has been met with praise, as the remaining funds are now safely held in the GMX Security Multisig.
The exploit took place on July 9th, with the hacker transferring part of the stolen funds to an unknown wallet. GMX clarified that the exploit was limited to GMXV1 and that V2, its markets, liquidity pools, and native asset were not affected. The hack itself was identified as a re-entrancy attack, a type of hack that exploits vulnerabilities in smart contracts.
Following the return of the funds, GMX’s digital asset has seen a significant increase in value, currently trading at $13.36. This positive development has generated renewed interest in GMX and its platform.
As the crypto community continues to monitor the situation, GMX has stated that contributors are working on a proposed distribution plan to be presented to the GMX DAO (decentralized autonomous organization) in the near future. More information is expected to be shared as the situation unfolds.
This unexpected turn of events serves as a reminder of the ever-evolving nature of the cryptocurrency landscape. With hackers and security vulnerabilities posing ongoing challenges, the importance of robust security measures and swift responses to breaches cannot be understated. As the crypto community navigates these challenges, the actions of the hacker in returning the stolen funds serve as a glimmer of hope for a more secure and trustworthy ecosystem.