The GMX protocol has suspended trading on GMX V1 following a $40 million exploit that compromised a liquidity pool, with the stolen funds transferred to an unknown wallet. GMX V1, the initial version of the GMX perpetual exchange on the Arbitrum network, faced this attack on a pool that offered liquidity providers a mix of digital assets, including Bitcoin and Ether. To mitigate further risks, the protocol has temporarily halted the minting and redemption of GLP tokens on both Arbitrum and Avalanche networks. Users were advised to disable leverage and adjust their settings accordingly. The exploit is confined to GMX V1 and its GLP pool, with no impact on GMX V2 or its associated markets. Blockchain security firm SlowMist identified a design flaw that allowed hackers to manipulate GLP token prices. Cybersecurity breaches remain a significant issue in the crypto sector, leading to substantial financial losses and deterring new users from entering the market. Read more AI-generated news on: https://app.chaingpt.org/news

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