GMX exploit

GMX Exploited for More Than $500,000

19.09.2022 09:08
by Gabriel Cross
1 min read

Decentralized exchange GMX was hit in a price manipulation exploit, with the attacker taking off with some $565,000.

GMX is a relatively young crypto exchange, having launched just late last year on Ethereum layer-2 solution Arbitrum. However, that’s more than enough time to become a victim of cybercrime in the crypto industry.

GMX’s AVAX/USD market was the target of the attack. By exploiting “minimal spread” and “zero price impact” features, the attacker opened substantial positions without any slippage, then sold the AVAX/USD at a higher price on centralized exchanges.

While GMX has confirmed its AVAX/USD market will remain available, the DEX did limit long positions to $2 million, and short positions to $1 million. It remains to be seen whether GMX will have to ditch the two of its features that enabled the attacker to pull off the exploit.

Author

  • Gabriel Cross used to be a bank officer for an international bank for many years. From this point of view, he says the time spent obtaining a degree in economics was a waste of time. A few years back, he decided to quit his job and start trading. He is obsessed with decentralized finance, but he often plays with the stock market, investing with great pleasure into ground-breaking tech solution startups.

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