What happened?
GMX, a decentralized perpetuals exchange, announced that users affected by a security breach can now claim compensation through its dApp. The exploit in question, which occurred in July 2025, was due to a reentrancy vulnerability in GMX V1’s contract structure that allowed an attacker to siphon off $42 million. To compensate for this, GMX is distributing a total of $44 million, combining recovered funds with $2 million from their treasury.
Who does this affect?
This compensation plan primarily affects Arbitrum GLP holders who suffered losses during the exploit. Impacted users will receive compensation in the form of GLV tokens, and if they retain these tokens for at least three months, they will earn additional rewards. Additionally, other market participants and stakeholders in the decentralized finance space may also be influenced by the resolution of such an exploit.
Why does this matter?
The breach and subsequent compensation have market implications, showcasing both the vulnerabilities and resilience within the DeFi ecosystem. By resolving the exploit with full compensation and added incentives for token holding, GMX aims to restore trust among its users and the broader community. This case also underscores the importance of robust security practices and swift action following security incidents to maintain market stability and investor confidence.