GMX hacker have returned $37.5m and keep $5m in ETH as bounty

Decentralized perpetuals exchange GMX has recovered the majority of funds stolen in a recent exploit after the attacker agreed to return about $37.5 million and keep $5 million in ETH as a white-hat style bounty, according to on-chain data flagged by security firm PeckShield and other blockchain analysts. The arrangement follows negotiations initiated via on-chain messages after the attacker drained tens of millions of dollars from GMX-related contracts on Arbitrum, prompting the protocol team and security community to open a communication channel and offer a bounty in exchange for the bulk of the funds. Under the deal, the attacker transferred back the stolen assets to GMX-controlled addresses while retaining a portion denominated in ETH as compensation, effectively reclassifying the incident from a pure theft to a “white-hat resolution” in the eyes of many observers. Such outcomes, while controversial, have become more common in DeFi, where protocols often lack immediate legal or technical recourse and instead rely on economic incentives to recover user funds and limit damage. The incident underscores ongoing smart contract and design risks in DeFi derivatives platforms and highlights how large, negotiated bounty payments are increasingly used as a pragmatic response mechanism after major exploits. It also reinforces the importance of continuous security auditing, real-time monitoring, and clear post-incident negotiation frameworks for protocols that manage nine-figure liquidity.

✨ AI-generated background, compiled from web sources — not editorial content.

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