Crypto Update: GMX Trading Halted After $40M Exploit, Bybit Announces Pump.fun Token Sale, US Sanctions North Korean IT Ring
In today’s cryptocurrency news, three major developments have shaken the market: GMX has paused trading following a significant liquidity exploit, Bybit confirmed details of the upcoming Pump.fun token sale while barring EU users, and the US Treasury sanctioned a North Korean IT worker ring linked to cyberattacks on American firms.
GMX Protocol Halts Trading and Minting After $40 Million Exploit
The GMX decentralized perpetual exchange protocol has suspended trading on its first version (GMX V1) deployed on the Arbitrum network. This emergency action follows a liquidity pool exploit on Wednesday that resulted in the theft of over $40 million in digital assets, sent to an unknown wallet.
The compromised liquidity pool comprised a diverse basket of tokens, including Bitcoin (BTC), Ether (ETH), and various stablecoins, serving as liquidity providers for the GMX platform. In addition to halting trading, the protocol has temporarily suspended minting and redemption of its GLP tokens on both Arbitrum and Avalanche (layer 1) networks to prevent further damage.
Users were advised by the GMX team to disable leverage functions and halt GLP minting as a precautionary measure. Blockchain security firm SlowMist attributed the hack to a design vulnerability that enabled attackers to manipulate the GLP token price by tampering with the total assets under management calculation.
Bybit Confirms Pump.fun Token Sale, European Users Excluded
International crypto exchange Bybit has officially disclosed details about the Pump.fun token sale, an eagerly awaited event for fans of the no-code memecoin launchpad. The public sale of the native token PUMP is set to begin Saturday at 14:00 UTC and will continue through Tuesday.
The token sale will offer 150 billion PUMP tokens, representing 15% of the total 1 trillion supply, at a fixed price of $0.004 USDT per token. Bybit, ranked as the world’s second-largest crypto exchange by trading volume, is the primary platform running the sale. It will accept subscriptions in multiple currencies: USDt (USDT), USDC, Solana (SOL), and bbSOL, catering to both stablecoin and Solana ecosystem investors.
However, users registered on Bybit’s European Union-regulated platform, Bybit.eu, will not be allowed to participate due to compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA).
Pump.fun first entered the market in January 2024, quickly gaining traction by empowering users to create and trade memecoins without needing to code. Its gamified interface and viral mechanics have spurred significant onchain activity on the Solana blockchain, transforming casual crypto enthusiasts into active token creators and traders.
This announcement follows a brief and now-removed reveal by Gate.io regarding the token sale, which reportedly could raise up to $600 million.
US Treasury Sanctions North Korean IT Worker Network Over Cyber Theft
In a cybersecurity crackdown, the United States Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on two individuals—a North Korean and a Russian national—as well as four associated entities allegedly involved in a North Korea-run network of IT workers targeting US cryptocurrency companies.
The sanctioned North Korean, Song Kum Hyok, is accused of stealing personal information of US citizens to create aliases used by foreign IT operatives seeking employment in American companies. The Russian national, Gayk Asatryan, allegedly employed North Korean IT workers through his Russia-based businesses.
The Treasury highlighted that North Korea uses such highly skilled IT labor worldwide to generate revenue that supports its missile programs.
“Treasury remains committed to using all available tools to disrupt the Kim regime’s efforts to circumvent sanctions through its digital asset theft, attempted impersonation of Americans, and malicious cyber-attacks,” stated Deputy Secretary Michael Faulkender.
North Korea’s cyber activities have gained notoriety in recent years, including a $1.5 billion hack against Bybit earlier this year. Security firm TRM Labs notes that the regime is now shifting towards deception-based revenue tactics, including the infiltration of IT workers into foreign companies.
Conclusion
Today’s crypto headlines underline ongoing challenges around security and regulatory compliance within the fast-evolving digital asset industry. The GMX exploit serves as a reminder of vulnerabilities within DeFi protocols, while Bybit’s Pump.fun token sale demonstrates both enthusiasm and regulatory hurdles in launching new crypto projects. Meanwhile, US sanctions highlight persistent geopolitical risks posed by state-backed cybercrime targeting the crypto sector.
As these situations develop, investors and users are advised to stay informed and exercise caution, particularly around platform security and regulatory restrictions.