GMX, a decentralized trading platform, saw its token surge by 11.9% after hackers agreed to return stolen funds. The development comes after a significant exploit that resulted in the loss of $42 million. GMX offered a $5 million bounty to encourage the return of the loot. The hacker has agreed to return some funds, but with conditions.
GMX’s Surge After Refund Promise
GMX had offered a 10% bounty to the hackers after the $42 million exploit, in a bid to recover the stolen funds. The company’s decision to offer a bounty was seen as a strategic move to minimize losses. Following the agreement, the platform’s token price surged by 11.9%, reflecting the market’s confidence in the company’s ability to resolve the issue.
Despite GMX’s offer of a 10% bounty, the hackers initially turned down the proposal but have returned $10.49 million in FRAX, although not fully accepting the $5 million reward for returning all funds. In an on-chain message, the hacker said they would return the remaining funds “later,” which raises questions.
The hacker’s wallet still has $44 million and recently swapped some of its assets for 11,700 ETH, now worth about $35 million. To limit the damage, GMX has stopped V1 trading and GLP minting. The DeFi community now awaits the hacker’s next steps and GMX’s upcoming analysis of the incident.
The Bounty Effect in Hack Cases
In a surprising twist, the hackers have returned $37.5 million of the $42 million they stole. This important move helps GMX in its recovery from the cyberattack. Among the returned funds is $10.49 million in Frax. However, there is still a concern, as $4.5 million of the stolen money has not been found or accounted for, leaving uncertainty in the recovery process.
In recent times, bounty offers have been used to achieve positive results in similar situations. For example, the hacker who stole $5 million from ZKsync, an Ethereum scaling protocol, returned the funds after accepting a 10% bounty. The swift resolution, alongside a similar KiloEx hack recovery, highlights a growing trend of negotiated settlements in crypto heists.
Similarly, in its latest update, Cetus Protocol, a decentralized exchange on the Sui blockchain, has also offered a $6 million bounty to the hacker responsible for the massive security breach it suffered on May 22. GMX and the market may now expect a further surge as they hope for a complete return of the loot.
