Another hack has emerged in the decentralized finance (DeFi) sector involving GMX and MMI contracts, as reported by several blockchain security firms. This new hack confirms that crypto hackers are at it yet again after the Lazarus Group staged the largest hack in the history of crypto. Over $1.4 billion worth of Ethereum was stolen leaving the market shaken as jitters spread across crypto investors.
In the recent incident involving, GMX and MIM contracts have lost crypto worth $12.9 million. Following this breach, the market is wondering about what transpired. Additionally, the breach has sparked concerns regarding security vulnerabilities on the associated platforms.
6,260 ETH Stolen From GMX and MIM Contracts; Details
According to a post by Lookonchain, on-chain perpetual & spot exchange GMX and MIM related contracts have lost a total of 6,262 ETH coins which totaled up to $12.9 million. Data on Arbiscan shows that the wallet address involved has been identified as 0xAF…8649.
The stolen funds have been bridged to the Ethereum network and distributed to three new wallets. Etherscan has identified one of the new wallets to be 0xa8…A1ff and it now holds a total of 1,259.1 ETH. The second wallet identified as 0x04…5729 holds a total of 2,001 ETH. The third wallet was identified as 0x01…0b5d and holds a total of 3,001 ETH.
Additionally, the breach majorly focused cauldrons which use GM tokens on the Abracadabra/Spell platform. Spell is designed for crypto lending and borrowing. Furthermore, clarification has it that GMX’s contracts were not affected by the hack.
GMX Confirms Its Contracts are Intact
Following surfacing of the news and after careful analysis of its contracts, GMX has confirmed that its contracts are unaffected by the hack. “To clarify, no issues have been identified with GMX contracts, and they are not affected by this unfortunate situation,” GMX wrote on X.
While this confirmation eases concerns amongst GMX users, the issues arose from Cauldrons which operate on the GMX V2’s GM pools. The clarification is crucial as it distinguishes GMX’s infrastructure further highlighting the affected components.
GMX has shown concern for the incident and gave sincere apologies to all clients affected by the attack. Additionally, the firm has promised to collaborate with Spell experts and security researchers to examine the source of the breach.
“The contributors are currently looking into the cause, and I’d like to apologise wholeheartedly to anybody negatively affected. This is very unfortunate,” Jonezee, a Communications Contributor at GMX, shared.
Crypto Platforms are Still Prime Targets for Hackers
The year kicked off well for the crypto sector with most coins picking up pace in the Trump-induced rally. However, with rising adoption of the crypto sector, the industry has become a prime target for hackers. So far, various crypto hacks have emerged in the Q1 of 2025 and the hackers don’t seem to stop there.
The recent hack that led to a loss of 6,262 Ethereum coins reminds the market of the prevalent security issues DeFi platforms. Despite GMX confirming that its GMX GM liquidity pools are unaffected, the hack serves calls for reassessment of security infrastructure on related protocols.
Abracadabra/Spell cauldrons affected by the incident should monitor any developments around the hack. The development team is working to resolve the matter as potential recovery efforts are underway.
#blockchain #crypto, #decentralized, #distributed, #ledger
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