GMX has completed one of the largest reimbursements in its history, compensating traders affected by a July 9 security breach that drained $42 million from its Arbitrum-based liquidity pool.
The distribution, worth about $44 million, fully restores losses and includes an additional $2 million contribution from the project’s treasury.
The attack exploited a vulnerability in GMX V1’s GLP pool — a reentrancy flaw that let the perpetrator manipulate the platform’s assets-under-management calculations to withdraw excess funds.
Within hours, GMX reached an agreement with the attacker, offering a 10% bounty for the return of the rest, which was promptly accepted.
Rather than paying out in the original GLP token, GMX is issuing compensation in GLV — a V2 liquidity vault product designed to replace GLP.
Recipients will receive an even split between GLV [BTC-USDC] and GLV [WETH-USDC], giving them exposure to approximately 25% Bitcoin, 25% Ether, and 50% stablecoins.
To reward loyalty, the protocol has set aside a $500,000 GLV pool for claimants who hold onto their tokens for at least three months without selling or transferring. Rewards will be distributed proportionally based on each participant’s allocation.
By making all impacted Arbitrum GLP holders whole, GMX has not only closed the chapter on the exploit but also used the incident to transition users to its upgraded liquidity system. The move signals the platform’s commitment to both security and long-term user retention.
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Source: https://coindoo.com/gmx-repays-44m-to-users-after-massive-exploit-and-launches-v2-tokens/