GMX Completes $44M Payout to Exploit-Hit Users

Key Takeaways:

• GMX finalizes $44M compensation for GLP holders hit by July exploit.
• Distribution issued in GLV tokens with asset mix similar to GLP.
• $500K incentive pool for users holding GLV for 3+ months.

GMX Finalizes $44M Compensation for GLP Holders

Decentralized perpetual exchange GMX has officially started the process of compensating those users who were affected by the incident that took place last month, where $42 million was exploited from the Arbitrum GLP pool.

A $44 million payout was made public by the platform, which included the funds recovered^z with an additional $2 million from its treasury.

GMX finalizes $44 million plan to compensate GLP holders affected by recent hack https://t.co/7QC124Kw9x

— The Block (@TheBlock__) August 14, 2025

The July 9 event was an instance where a bug in GMX V1’s GLP pool, as per CertiK annotations, was a reentrancy issue. Due to this vulnerability, the attacker was able to trick the protocol’s AUM calculation and take out more tokens than they had deposited.

GMX reacted with the highest speed and sent a bounty offer on-chain to the hacker, which was the proposal of getting back 90% of the money that was stolen in exchange for retention of the other 10%. As a result, the hacker accepted, and most of the money was recovered.

Distribution of GLV and Incentives for Holders

The compensation will be done using GLV tokens, which is GMX’s new and improved⁴ vault for liquidity product introduced in V2. Two variants i.e GLV [BTC-USDC] and GLV [WETH-USDC] will be allocated to eligible users. Essentially, this distribution is the same as the initial asset exposure of GLP — around 25% WBTC, 25% ETH, and 50% stablecoins.

To provide support for the long-term holding of this asset, GMX has set up a $500,000 GLV incentive pool. The people who will have their allocated GLV for a minimum of three months without selling or transferring will be able to take a share of this pool that will be proportional⁹ to their holding. This method is targeted at upgrading the vault system and stabilizing liquidity

Summary

GMX’s $44 million payout marks a strong resolution to its July exploit, fully reimbursing affected Arbitrum GLP holders. By introducing GLV tokens and a substantial incentive program, the platform is not only compensating losses but also reinforcing trust in its ecosystem. This move underscores GMX’s commitment to user protection and long-term platform sustainability.

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