The hackers took control of 82,519 GMX tokens and exchanged the assets for 2,627 Ether, then transferred the assets to the Ethereum network.
Another flaw used by hackers to start the year saw millions seized from a whale holding significant quantities of the native currency of the decentralized finance (DeFi) technology GMX.
Several members of the community saw unusual GMX token trades on January 3. The transactions were then identified as an exploit that stole $3.4 million worth of GMX tokens from a GMX whale by security companies CertiK and PeckShield.
Hackers reportedly gained hold of 82,519 GMX tokens and swapped them for 2,627 ethereum (ETH $1,256) according to data analysis website Lookonchain. The assets were thereafter cross-chained to the Ethereum network by the attackers via the Hop and Across protocols.
The token’s value fell below $38 as the hack was taking place before quickly rising again. The coin is currently trading at about $41 at the time of writing.
The rapid price decline, which may have been brought on by the hack, startled members of the community. Tweeted by one user:
Observing the impact of the breach through the charts, some members of the community noticed remarks on social media that were critical of self custody.
The occasion, according to one Twitter user, “the dark side of self-custodial wallets.” Following a $12 million hack, here is how Defrost Finance intends to reimburse users.
Luke Dashjr, a core developer for Bitcoin (BTC $16,869), stated that he lost BTC to hackers on January 1. As a result, the crypto community has expressed its belief that the exploit underlines the dangers associated with choosing to self-custody digital assets.
The notion that ordinary people would have no hope if a top developer didn’t secure his BTC was expressed by other community members.The holiday season saw activity from DeFi hackers.
Through a flash loan assault on December 25, $12 million worth of digital assets were seized, wiping out Defrost Finance users. The following day, another DeFi hack was reported, in which thieves used tainted APKs to steal roughly $8 million from Bitkeep wallets.
