Hackers steal $3.4 million in GMX tokens

A hack that exploited and drained GMX tokens from a whale enabled the perpetrator to exchange the assets for 2,627 Ether.

The hacks go on and on. It seems that exploits are being found in the code of DeFi protocols left, right and centre, and it must be wondered just when will the space reach the maturity and breadth of security whereby the hacks stop happening.

GMX whale hack

Hackers have stolen $3.4 million worth of GMX tokens from a whale, according to security firms CertiK and PeckShield. 

The hack saw the perpetrators take control of 82,519 GMX tokens and exchange them for 2,627 Ether. The assets were then transferred to the Ethereum network via the Hop Protocol and Across Protocol. 

The hack led to a sudden drop in the value of the GMX token to $38, but it has since recovered to $41. 

An administrator in the GMX Telegram group confirmed that a phishing attack had taken place, clarifying that there were no security vulnerabilities on the GMX platform itself. A moderator in the group stated that they were in communication with the victim of the attack.

Holiday period hacks

On January 1, Luke Dashjr, a Bitcoin core developer, announced that he had fallen victim to hackers and lost BTC as a result. This news sparked discussions within the cryptocurrency community about the dangers of self-custodying digital assets. Some community members argued that if even a top developer like Dashjr couldn’t secure his BTC, it would be difficult for the average person to do so. 

DeFi hackers have been active over the holiday season, with $12m worth of digital assets taken in a flash loan attack on Dec. 25 and $8m drained from Bitkeep wallets in another hack on Dec. 26.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.