The GMX attacker converted stolen assets into ETH and refused to return them according to the 10% white bonus proposal.
The assets include various Tokens such as WBTC, WETH, UNI, FRAX, LINK, USDC, and USDT, which the hacker sold for 11,700 ETH, equivalent to $32.33 million, and also held 10.495 million FRAX, with a total value of up to $42.8 million.
- GMX hacker converted stolen assets into ETH and FRAX worth nearly $43 million.
- Hacker refused to return assets and the 10% white bonus proposed by the GMX project.
- All assets were allocated across 5 wallets, with 4 wallets containing ETH from Token sales.
What actions did the GMX hacker take after the asset theft?
On-chain analyst Ember confirmed that the GMX hacker converted most of the stolen assets from the GMX V1 pool into ETH, holding a total of 11,700 ETH and 10.495 million FRAX across 5 wallets. This is a common action to convert assets to increase liquidity and reduce monitoring risks.
According to updated data on 10/7/2024, the hacker sold Tokens such as WBTC, WETH, UNI, LINK, USDC, and USDT for ETH, but did not sell FRAX.
Why did the GMX hacker not accept the 10% white bonus and return the assets?
The refusal to return assets and accept the white bonus demonstrates the hacker's efforts to avoid legal responsibility. GMX proposed that the hacker return the assets and receive a 10% bonus to protect the system and improve community image. However, the hacker did not accept this proposal.
"The hacker is holding large assets in ETH and FRAX worth nearly $43 million, but shows no signs of cooperating with the project" – Ember, On-chain Analyst, 10/7/2024.
Ember – On-chain Analyst, report tracking the case on 10/7/2024
How can the value of assets held by the GMX hacker be compared?
The total value of ETH and FRAX held by the hacker is estimated at around $42.8 million, which surpasses many previous cryptocurrency attacks that shocked the market. Compared to other attacks, this value reflects severe damage and increasingly serious security risks for DeFi projects.
| Attack | Value of Stolen Assets (USD) | Main Asset Type | Asset Status |
|---|---|---|---|
| GMX (2024) | 42.8 million | ETH, FRAX, WBTC, UNI, LINK, USDC, USDT | Converted to ETH and held FRAX |
| DeFi X Attack (2023) | 25 million | ETH, Stablecoin | Mostly liquidated |
| DeFi Y Attack (2022) | 35 million | Diverse Tokens | Mostly dispersed across multiple wallets |
What is the significance of the GMX hacker holding FRAX in the asset exchange?
FRAX is an algorithmic Stablecoin with stable liquidity and low price volatility. Holding FRAX shows that the hacker wants to maintain an asset with a relatively fixed value, minimizing market price volatility risks compared to other Tokens. Additionally, FRAX can be used to ensure liquidity when necessary.
"Holding Stablecoins like FRAX is a common strategy to preserve asset value in cryptocurrency attacks." – Dr. Le Minh Tuan, Blockchain Finance Expert, 2023.
Dr. Le Minh Tuan – Blockchain Finance Expert, statement from 2023
Frequently Asked Questions
- Which wallets did the GMX hacker use to store assets?
- The hacker distributed assets across 5 separate wallets, with 4 wallets used to store ETH from Token sales, enhancing security and dispersing risks.
- Why did GMX propose returning assets with a 10% white bonus?
- The proposal aimed to encourage the hacker to return assets, minimize project damage, and increase transparency in the cryptocurrency community.
- What impact does selling assets for ETH have on the market?
- Selling a large number of Tokens for ETH can cause liquidity and price fluctuations, especially for low-liquidity Tokens in the pool.
- Does holding FRAX have any impact?
- FRAX is a Stablecoin that helps the hacker preserve asset value and reduce risks from cryptocurrency market volatility.
- What are GMX's next plans after the attack?
- GMX will continue to enhance security and collaborate with stakeholders to track and trace stolen assets.
