GMX Loses $42M in Major DeFi Hack

GMX, a decentralized exchange, suffered a security breach on July 9, 2025, resulting in over $42 million being stolen from its Arbitrum-based V1 perpetual platform, primarily via the GLP liquidity pool. The attacker exploited the platform by minting and redeeming GLP tokens for high-value assets, then transferred the stolen funds to Ethereum using Tornado Cash to obscure the trail. In response, GMX offered a 10% white-hat bounty and promised no legal action if the stolen funds are returned within 48 hours. The hack caused a sharp drop in the GMX token price and drew criticism toward Circle, the issuer of USDC, for not freezing assets quickly. The incident stands as one of the largest DeFi hacks of 2025 and has reignited concerns about cross-chain security and smart contract vulnerabilities. Investigations and recovery efforts are ongoing as the community monitors the hacker's wallet activity.