Hacker Returns $42 Million in Stolen Crypto in Exchange for $5 Million Bounty

A security flaw in the GMX V1 software was made public, causing a significant upheaval in the decentralized finance (DeFi) ecosystem and forcing immediate action to protect user assets.

GMX, a prominent perpetual futures trading platform built on blockchain technology, relies on its V1 protocol for liquidity provision through its GLP (GMX Liquidity Provider) token.

The flaw, which could have exposed up to $42 million in funds belonging to GLP holders, was identified and mitigated through the ethical intervention of a white-hat hacker.

This individual, operating under the Ethereum address 0xDF3340A436c27655bA62F8281565C9925C3a5221, played a pivotal role in recovering the at-risk assets, demonstrating the critical importance of community-driven security in blockchain networks.

By notifying GMX’s security team and facilitating the safe return of the funds, the hacker not only prevented a potential catastrophe but also highlighted the evolving dynamics of bug bounties in the crypto space.

White-Hat Hacker Secures Funds

The ...