Phishing Attack on GMX Whale Wallet Causing Damage Worth $3.4 Million Of GMX Tokens 

  • On January 3rd, several community members observed suspicious GMX token trades.$3.4 million worth of GMX tokens were lost from the GMX whale,  according to the report.
  • GMX’s Telegram channel administrator confirmed the phishing event and clarified that there are no security issues with the GMX platform.
  • The core developer Luke Dashjr mentioned that he lost BTC to hackers.  

The year started with hackers exploiting devs and firms, with millions being took away from a whale possessing a large amount of DeFi (decentralized finance) protocol GMX’s native token. 

Several community members spotted suspicious movements of GMX tokens on January 3rd. Also, security firms PeckShield and Certik indicated that the transactions were exploits that stole GMX tokens worth $3.4 million from a GMX whale.

The administrator of GMX’s Telegram channel confirmed the phishing event and made it clear that there are no security issues with the GMX platform. 

According to Lookonchain, the data analysis platform, the hacker took control of 82,519 tokens of GMX and swapped the digital assets for 2,627 Ethereum. After that, the assets were cross-chained to the Ethereum network using Across Protocol and Hop Protocol.

Source: Etherscan. 

The token’s value dropped to $38 as the hack occurred before recovering shortly. GMX was trading at around $41.57 at the time of writing. The sudden decline in price , which the hack may have brought about, alarmed community members. 

Some of the community members observed the breach through the charts, and others noticed comments on social media that were on the negative side of self-custody. One Twitter user mentioned that the highlights of the event were “the dark side of self-custodian wallets.”

Community members concerned after core developer loses BTC to hackers

Luke Dashjr, a core developer of bitcoin (BTC $16,810), stated that he lost BTC to hackers.Crypto community members expressed their opinions that the exploit highlights the danger associated with opting to self-custody digital assets. 

Other community members expressed these sentiments, saying that if a top developer was not able to secure his BTC, then ordinary people wouldn’t have any hope.

During the holiday season, DeFi hackers have been active. Through the flash loan attack, on December 25, $12 million worth of digital assets were seized, liquidating Deforest Finance users. Just after a day, another DeFi hack was noted, in which hackers used tainted Android Package Kits (APKs) to drain out around $8 million from Bitkeep wallets. 

The token’s value dropped to $37.8. GMX was trading at $41.57 with a fall of 0.09%, its  value remained at 0.002471 BTC with an increase of 0.7%, its market cap saw a jump of 0.13% at $350,103,148 at the time of writing.

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