๐ July 10, 2025 | Singapore
The DeFi world never ceases to amaze. This week, the decentralized exchange GMX made an unusual decision: offering an official reward to the hacker responsible for draining millions of dollars from its protocol. The GMX team, known for its strong trading community and non-custodial platform, publicly announced that they are willing to negotiate with the attacker to recover the funds and prevent further losses for its users.
In an industry where security breaches are costly and reputation is everything, this "hacker for reward" twist opens a profound debate: should DeFi protocols surrender to extortion, or is it a smart tactic to recover capital and protect the community?
It all started just four days ago, when unusual activity was detected in GMX's main liquidity pool. A sophisticated exploit allowed an attacker to drain approximately $7.5 million in crypto assets, primarily stablecoins and ETH. Initial on-chain traces showed that the hacker exploited a vulnerability in the way GMX calculates asset prices for high-volume swaps.
Within minutes, the liquidity evaporated. While some users panicked, the developer community acted quickly to shut down critical functions and contain the breach. What was surprising was what happened next: instead of initiating an all-out manhunt, the GMX team opened a "private communication channel" through blockchain intermediaries, inviting the hacker to negotiate the return of the funds in exchange for a rewardโwhat is known as a "white hat bounty."
According to a GMX spokesperson on their official Discord channel, the reward offered is around 10% of the stolen funds, about $750,000, provided the attacker returns the remaining 90%. This move has generated divided opinions: for some, it's a pragmatic strategy to minimize damage. For others, it sets a dangerous precedent that could motivate more attacks hoping to negotiate.
DeFi security experts, such as SlowMist, claim that these types of bounties have worked before. In 2021, Poly Network managed to recover $600 million through a similar deal. However, each case has its own nuances: sometimes the hacker cooperates, sometimes not. Meanwhile, GMX continues to work with blockchain forensics firms to track wallets and movements of the stolen capital.
The GMX token reacted relatively calmly: after falling 8% on the day of the hack, it recovered some of its value after the bounty announcement, reflecting that the community perceives the measure as a necessary evil rather than a sign of outright weakness. The DeFi ecosystem, always prone to exploits, is watching closely: will this agreement be the least painful solution or will it open the door to more extortions disguised as "ethical hacks"?
Topic Opinion:
Innovation goes hand in hand with risk. The GMX incident shows that no protocol, no matter how audited, is immune to vulnerabilities. Offering bounties to hackers? It may sound outrageous, but sometimes it's the only way out to save millions and avoid a community collapse. The important thing is that these crises leave clear lessons: strengthen audits, reward ethical hackers before they strike, and educate users to choose transparent and well-monitored platforms. If GMX manages to recover most of the funds, it will be a triumph amidst the chaos. And if not, it will be a wake-up call for the entire industry.
๐ฌ What do you think about paying bounties to hackers to recover stolen funds? Is it a smart tactic or an open door to more exploits? What else should the DeFi community do to protect itself from these attacks?
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