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The broader cryptocurrency space has been notified of another scam alert involving GMX, a decentralized exchange. The malicious actors stole Ethereum (ETH) valued at approximately $13 million, or 6,260 ETH.
How $13 million attack unfolded
In a post reacting to the development, GMX Communication contributor Jonezee (@Jonas_ALA), on X, clarified the extent of reach. According to Jonezee, the GMX contracts were not affected and remained safe.
This suggests that the attackers could not breach GMX’s platform. However, the associated "Abracadabra Spell cauldron" protocols were compromised.
Alex DovbnyaAbracadabra is a decentralized finance (DeFi) lending protocol allowing users to borrow its stablecoins, Magic Internet Money (MIM). Users have to provide collateral from different assets to qualify to borrow.
"Cauldrons" refers to the specific lending market within Abracadabra. The hackers targeted the cauldrons using GM pools as collateral or liquidity sources. With the investigation still in its early stages, the full scale of the damage done remains unelaborated.
Technical experts have stated that users using Abracadabra may experience liquidity issues or other risks pending when the exchange stabilizes.
A user named OxAnhell on X, who requested information, asked, "So the GMX GM liquidity pools in your earn page are unaffected?"
Jonezee’s reply reassured him of the safety, stressing "no issues have been identified" with the GMX contracts.
Are Ethereum holders under attack?
This development marks another attack by malicious actors targeting the Ethereum ecosystem.
Yuri MolchanIn February, hackers targeted the cold wallet of the Bybit exchange and stole $1.4 billion in ETH. The incident temporarily set back the price of Ethereum, which dipped by about 3% at the time.
A recent U.Today report states that efforts are ongoing to track and trace these funds. In a collaborative move involving Tether, Tron and TRM Labs, over $9 million linked to the Bybit hack have been frozen.
As of press time, Ethereum price was changing hands at $2,060.12, a 1.45% decrease in the last 24 hours.
Vladislav Sopov
Dan Burgin