GMX Finalizes $44 Million Compensation for GLP Holders After Hack

Decentralized perpetuals exchange GMX has completed plans to reimburse users affected by last month’s $42 million security exploit, announcing on Wednesday that eligible Arbitrum GLP holders can now claim their distributions through the platform’s dApp.

Full Repayment Plus Treasury Top-Up

The total compensation package amounts to $44 million, covering the recovered GLP funds along with an additional $2 million from GMX’s treasury. The exchange said this makes all impacted holders “whole” and marks a favorable resolution to the incident.

The reimbursement will be issued in GLV tokens — the upgraded liquidity vault asset for GMX V2. Each recipient will receive two types of GLV in equal proportions: GLV [BTC-USDC] and GLV [WETH-USDC], giving exposure to approximately 25% wrapped bitcoin, 25% ether, and 50% stablecoins, mirroring the original GLP asset mix.

July Exploit and Recovery Efforts

On July 9, a vulnerability in GMX V1’s GLP pool on Arbitrum was exploited, resulting in $42 million in losses. Blockchain security firm CertiK identified the issue as a reentrancy bug, which allowed the attacker to manipulate the protocol’s assets-under-management calculation and withdraw more than their deposit.

GMX quickly contacted the attacker on-chain, offering a 10% white-hat bounty in exchange for the return of 90% of the stolen funds — an offer that was accepted.

Incentives for Long-Term Holders

To encourage stability, GMX is also launching a $500,000 GLV incentive pool. Users who retain their allocated GLV for at least three months without selling or transferring will receive a pro-rata share of this reward.