The hackers began the year with a mining goal of about several million dollars stolen from a “Whale” holding the native token of the decentralized finance (DeFi) protocol GMX. On January 3, some members of the community noticed erroneous $GMX token movements. 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.
The hackers allegedly acquired hold of 82,519 $GMX tokens and traded the assets for 2,627 $ETH, according to data analysis tool 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.
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. As a result, the crypto community has expressed its belief that the exploit underlines the dangers associated with choosing to self-custody digital assets.
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