GMX halts trading, token minting following $40 million exploit

The exploit of the GMX V1 decentralized exchange is the latest in a string of attacks targeting crypto firms and users in 2025.

The GMX protocol halted trading on GMX V1 after a liquidity pool suffered an exploit on Wednesday, leading to $40 million in funds being stolen and sent to an unknown wallet.

GMX V1 is the first version of the GMX perpetual exchange deployed on the Arbitrum network. The attacked pool provides the liquidity provider of the GMX protocol with a basket of underlying digital assets including Bitcoin (BTC), Ether (ETH) and stablecoins, according to the GMX team.

The protocol has also announced a temporary suspension in minting and redemption of GLP tokens on both Arbitrum and the layer-1 Avalanche network to protect against any additional fallout from the cybersecurity exploit.