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DeFi

DeFi eliminates intermediaries by using smart contracts on blockchains to provide financial services like lending, borrowing, and trading. In 2026, the "DeFi 3.0" era is defined by Institutional DeFi and the integration of Real-World Assets (RWA). From liquidity provisioning on Uniswap to advanced lending on Aave, this tag tracks the evolution of autonomous financial systems, yield optimization, and the rise of AI-driven portfolio management in the decentralized economy.

67617 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
GMX Hacker Strikes White-Hat Deal: $42M Heist Turns $3M Profit After $5M Bounty Offer

GMX Hacker Strikes White-Hat Deal: $42M Heist Turns $3M Profit After $5M Bounty Offer

On July 9, decentralized exchange GMX became the latest DeFi protocol to suffer a major exploit, with over $42 million in digital assets reportedly siphoned from its vaults. According to data from DeBank, the breach involved a suspicious outflow of funds to a single wallet address: 0xdf3340a436c27655ba62f8281565c9925c3a5221. The stolen funds were then bridged from Arbitrum—a Layer 2 Ethereum scaling network—back to the Ethereum mainnet, a tactic often used by exploiters to hide or launder assets. In a surprising turn, blockchain analytics platform Lookonchain reported that the attacker agreed to a white-hat deal, opting to return the funds in exchange for a $5 million bounty. The #GMX hacker chose to return the stolen $42M assets for a $5M white-hat bug bounty. Currently, $10.49M $FRAX has been returned. Another $32M assets had been swapped into 11,700 $ETH , which is now worth $35M—netting a ~$3M gain. 🤔Will the hacker return all 11,700… pic.twitter.com/XjBlAK81Mf — Lookonchain (@lookonchain) July 11, 2025 White-hat deals are occasionally used in DeFi when exploiters are willing to return funds in good faith, often after revealing critical vulnerabilities. This approach seeks to avoid prolonged investigations and reputational damage while recovering assets for affected users. Partial Returns and a Profitable Arbitrage According to Lookonchain’s analysis, the hacker has already returned $10.49 million worth of FRAX stablecoins. However, the remaining $32 million was not simply held—it was swapped into 11,700 ETH and is now worth $35 million, resulting in an unexpected $3 million profit due to ETH price appreciation. The move is sparking debate over whether the attacker will return the full 11,700 ETH or simply send back $32 million and keep the additional gain. As of now, the hacker has yet to confirm their intentions publicly. The incident is raising questions about how white-hat agreements are enforced and whether attackers can ethically retain profits earned post-exploit. While some see the return of most funds as a net positive, others argue that walking away with millions in profit—even with partial compliance—undermines the very spirit of the white-hat model. DeFi Security and the Ethics of Exploitation The incident highlights ongoing security challenges within decentralized finance, particularly in relation to large asset vaults and cross-chain functionality. As of now, GMX has not confirmed whether a formal white-hat agreement was established prior to the partial return of funds. The situation remains under observation, with the outcome likely to influence broader discussions around the role of white-hat arrangements and ethical boundaries in DeFi. GMX Confirms $42M Exploit Rooted in Re-Entrancy Bug In its lastest post GMX confirms that the $42 million exploit was caused by a re-entrancy vulnerability within its V1 contracts. Although the affected function was protected by a nonReentrant modifier, it only applied within the same contract, allowing the attacker to bypass this safeguard and manipulate the BTC average short price through the Vault contract. https://t.co/1rfDbjDQ0r — GMX 🫐 (@GMX_IO) July 10, 2025 By exploiting this loophole, the attacker artificially drove the GLP price up and profited by redeeming inflated GLP tokens after opening a large position using a flash loan. The vulnerability was tied to how GMX V1 handled pricing calculations across separate contracts, a structure that has been revised in GMX V2, where calculations and executions now occur within the same contract to avoid such risks. In response, GMX paused trading on Avalanche, engaged with security partners and major infrastructure providers, and initiated direct on-chain communication with the exploiter. Minting and redemption of GLP on Arbitrum has been temporarily disabled pending the protocol’s transition plan and user reimbursement process. GMX confirmed that GLP minting on Avalanche is also paused, though redemptions remain active. V1 positions will be wound down and migrated to a reimbursement pool for affected users, and all remaining V1 orders should be cancelled. GMX has also issued a warning to all V1 forks, urging them to immediately implement fixes and security audits to avoid similar vulnerabilities.

Author: CryptoNews

2025/07/11

Why holding ETH is the best way to participate in the stablecoin wave?

Why holding ETH is the best way to participate in the stablecoin wave?

By Maria Shen & Sanjay Shah, Electric Capital Compiled by: TechFlow *Note: Throughout this article, “Ethereum” refers to the network and “ETH” refers to the asset that powers it. Far

Author: PANews

2025/07/11

Ethereum price breaks through $3,000 after ETH Foundation moves 21,000 ETH in the past two months

Ethereum price breaks through $3,000 after ETH Foundation moves 21,000 ETH in the past two months

Ethereum has surpassed $3,000 in value, following the ETH Foundation transferring a total of 21,000 ETH in the past two months to its internal Gnosis Safe Proxy address. According to data from crypto.news, ETH (ETH) touched on a new high…

Author: Crypto.news

2025/07/11

The future of work is AI-powered. Decentralization makes it fair | Opinion

The future of work is AI-powered. Decentralization makes it fair | Opinion

Decentralized AI isn’t a silver bullet, but it builds rights and attribution into the system, offering creators a seat at the table they’ve long been denied.

Author: Crypto.news

2025/07/11

Ethereum Foundation explains its ZK technology strategy: L1 zkEVM first, defining a new standard for "real-time proof"

Ethereum Foundation explains its ZK technology strategy: L1 zkEVM first, defining a new standard for "real-time proof"

PANews reported on July 11 that the Ethereum Foundation published a document stating that it is fully committed to zero-knowledge proof (ZK) technology, hoping to apply it at all levels

Author: PANews

2025/07/11

The crypto market rose for two consecutive days, BTC broke through $116,000 to set a new high, and ETH broke through $3,000

The crypto market rose for two consecutive days, BTC broke through $116,000 to set a new high, and ETH broke through $3,000

PANews reported on July 11 that according to SoSoValue data, as regulatory expectations improved, liquidity continued to ease, and market sentiment gradually rose, the crypto market sector rose for two

Author: PANews

2025/07/11

When Cryptocurrency Returns Are Poor, You Need a Plan B

When Cryptocurrency Returns Are Poor, You Need a Plan B

By: DeRonin Compiled by: Luffy, Foresight News I started my career in cryptocurrency and I am truly grateful for what it has brought me. But recently, I came to the

Author: PANews

2025/07/11

US Treasury Officially Scraps Crypto Broker Reporting Rules After Congressional Vote

US Treasury Officially Scraps Crypto Broker Reporting Rules After Congressional Vote

The US Treasury Department officially scrapped crypto broker reporting rules on Thursday, following a vote by Congress to revoke them under the Congressional Review Act, which President Trump signed in April. 💥 BREAKING: CRYPTO TAXES The US Treasury has removed crypto broker reporting rules — including Form 1099‑DA It was designed to require crypto brokers, including DeFi platforms, to report users’ digital asset transactions to the IRS for tax compliance Let’s gooo! 🔥 pic.twitter.com/dpGOASbW3Y — Real World Asset Watchlist (@RWAwatchlist_) July 10, 2025 The regulation titled “Gross Proceeds Reporting by Brokers that Regularly Provide Services Effectuating Digital Asset Sales” was published December 30, 2024, and is intended to require certain decentralized finance industry participants to file information returns as brokers effective February 28, 2025. Source: federalregister.gov Under Public Law 119-5 and the Congressional Review Act, the final rule has no legal force or effect and is considered null and void, as if it had never taken effect. The Treasury is removing the rule from the Code of Federal Regulations and reverting to the previous text, which excluded entities solely engaged in validating distributed ledger transactions or selling hardware for private key control from broker reporting requirements. Republicans in Congress successfully challenged the Biden-era rule that would have classified DeFi platforms as brokers, requiring extensive data collection and reporting obligations. The Treasury estimated that billions in crypto-related taxes were going uncollected annually, but industry advocates argued that the requirements were technically impossible for decentralized platforms to implement. The regulation faced widespread criticism for misunderstanding decentralized technology and potentially driving innovation overseas, prompting legal challenges from the Blockchain Association and Texas Blockchain Council . Congressional Battle Over DeFi Innovation and Tax Compliance Senator Ted Cruz led the Congressional Review Act resolution alongside Representative Mike Carey, arguing the rule represented government overreach that would stifle American cryptocurrency innovation. Cruz stated the regulation “ directly and immediately would harm American cryptocurrency innovation and drive development overseas. “ 1/ @SenTedCruz ’s CRA resolution to roll back the DeFi Broker Rule – anti-crypto, anti-privacy IRS midnight rulemaking – is critical to providing clarity for crypto and DeFi in the US. Congress should vote YES on the CRA. This has been a long battle… How did we get here? 👇 — Kristin Smith (@KMSmithDC) February 12, 2025 The Joint Committee on Taxation estimated repealing the rule could cost the government nearly $4 billion over ten years in lost tax revenue. Despite projected losses, lawmakers supporting repeal prioritized privacy, technical feasibility, and innovation over tax collection efficiency. House Financial Services Committee Chairman French Hill also condemned the proposal as excessive government intervention, arguing that defining DeFi software providers as brokers would create costly reporting obligations for entities that never take custody of user funds. The regulation threatened to push American digital asset development overseas while undermining technological progress. White House Crypto Czar David Sacks supported the repeal effort, calling the regulation an “ 11th-hour attack on the crypto community by the Biden administration. ” The White House is pleased to announce its support for the CRA introduced by @SenTedCruz and @RepMikeCarey to rescind the so-called Broker DeFi Rule, an 11th hour attack on the crypto community by the Biden administration. pic.twitter.com/T7Hxasb4aC — David Sacks (@davidsacks47) March 4, 2025 The administration positioned itself as strongly supportive of crypto industry concerns while establishing federal working groups on digital asset regulation. The successful repeal prevents the IRS from reintroducing similar proposals in the future, marking a significant victory for DeFi advocates. Broader Regulatory Shifts Signal Pro-Crypto Policy Direction The Treasury Department separately announced exemptions that will free banks and brokerage firms from reporting customers’ crypto holdings on financial statements, contingent upon demonstrating effective digital asset risk management capabilities. The SEC began issuing guidance clarifying that some crypto arrangements might not qualify as liabilities for reporting purposes. These regulatory relief measures came amid sustained Congressional pressure to revise the controversial SAB 121 accounting bulletin. While the Senate voted to overturn SAB 121 in May with 60 senators supporting repeal, President Biden’s veto prevented the measure from taking effect. States continue advancing Bitcoin legislation independently of federal action, with 23 states introducing Bitcoin reserve bills and 35 proposals under consideration. In fact, following that, Kentucky Governor Andy Beshear signed the “Bitcoin Rights” bill into law . Beyond the United States, Japan’s Senate has also recently approved legal amendments that give crypto brokerage firms increased operational freedom through new “intermediary business” categories, which come with reduced regulatory barriers. The legislation creates customer safeguards while promoting innovation, requiring the Prime Minister’s approval for crypto operators to hold assets domestically.

Author: CryptoNews

2025/07/11

2 affordable cryptos with 9,000% potential, similar to buying Ethereum at $8 in early 2017

2 affordable cryptos with 9,000% potential, similar to buying Ethereum at $8 in early 2017

LILPEPE and TRON may mirror early Ethereum, with analysts forecasting up to 9,000% gains in coming years. #partnercontent

Author: Crypto.news

2025/07/11

U.S. Treasury officially removes IRS controversial Biden-era on DeFi

U.S. Treasury officially removes IRS controversial Biden-era on DeFi

U.S. Treasury officially removed the IRS's rule for DeFi transaction reporting.

Author: Crypto.news

2025/07/11

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