GMX hacker returns $10.49 million FRAX, profiting $3 million from $32 million ETH conversion

GMX hacker returns $10.49 million FRAX, profiting $3 million from $32 million ETH conversion

The GMX hacker, who exploited the decentralized crypto exchange GMX and stole over $42 million in digital assets, has returned a portion of the funds. According to blockchain data, the hacker has returned $10.49 million in FRAX, a stablecoin, while also converting $32 million worth of ETH into FRAX, resulting in a profit of approximately $3 million [1].

The hacker initially transferred 11,700 ETH, worth around $32 million at the time, to four separate wallets in an attempt to obscure the trail of the stolen funds. This strategy involved splitting the ETH into smaller amounts, with three wallets receiving 3,000 ETH each and one receiving 2,699.95 ETH [1].

GMX offered a 10% bounty to the hacker if they returned the remaining 90% of the stolen funds within 48 hours. The platform also stated that it would not pursue legal action if the funds were returned. This unconventional move aligns with similar tactics used in previous DeFi exploits [1].

The return of the $10.49 million in FRAX, along with the conversion of $32 million in ETH, indicates that the hacker has profited from their actions. The exact motives behind these transactions remain unclear, but they highlight the complexity of tracking and recovering stolen funds in the crypto ecosystem.

References:
[1] https://coinedition.com/gmx-hacker-on-chain-trail-laundering-stolen-funds/