Bitcoin DeFi platform Alex Protocol loses $8.3M to exploit

1 week ago

Alex Lab Foundation said it volition afloat reimburse users affected by the $8.3 cardinal exploit, with compensation issued successful USDC pursuing a structured claims process.

Bitcoin DeFi level Alex Protocol loses $8.3M to exploit

Alex Protocol, a Bitcoin decentralized concern (DeFi) level connected the Stacks blockchain, suffered an exploit connected June 6, resulting successful $8.3 cardinal successful integer plus losses.

In an X announcement, Alex Protocol said the breach was caused by a vulnerability successful its self-listing verification logic. The attacker utilized the flaw to drain liquidity from respective plus pools.

The Bitcoin DeFi level said the attackers siphoned astir 8.4 cardinal Stacks (STX) tokens, 21.85 Stacks Bitcoin (sBTC), 149,850 successful USDC (USDC) and USDt (USDT), and 2.8 Wrapped Bitcoin (WBTC). The incidental is 1 of the largest exploits successful the Stacks ecosystem to date.

In effect to the incident, Alex Lab Foundation, the enactment supporting the protocol, pledged to afloat reimburse affected users utilizing its treasury reserves.

Cointelegraph reached retired to Alex Protocol done its X relationship but did not person a effect by the clip of publication.

Alex Protocol to reimburse affected users post-exploit

According to Alex Lab, compensation volition beryllium issued successful USDC tokens. The protocol volition basal its reimbursement calculations connected the mean onchain speech rates betwixt 10:00 americium UTC and 2:00 p.m. UTC connected the time of the attack.

Alex Lab said wallets affected by the onslaught volition person an onchain notification by June 8, including a personalized assertion form. Users indispensable taxable the completed signifier with a receiving wallet code by June 10.

The squad said it volition verify submitted claims and administer USDC payments wrong 7 days. Users who bash not person a signifier were urged to interaction the squad via email.

The squad did not uncover the method mechanisms down the exploit but is expected to merchandise a post-mortem report.

Alex Protocol deed by different hack successful May 2024

This is not the archetypal information incidental successful which Alex Protocol has mislaid millions. In May 2024, the DeFi level suffered an exploit involving its crosschain span infrastructure. The incidental led to the unauthorized withdrawal of $4.3 million successful crypto from the platform.

The DeFi protocol said the May exploit was apt linked to the North Korean cybercrime radical Lazarus. The squad pointed to 3 wallets utilized successful the onslaught and said they worked with blockchain expert ZachXBT to hint the stolen assets.