$8.3M Exploit on Alex Protocol: Full Reimbursement Planned

Alex Protocol to Reimburse Users After $8.3M Exploit

Alex Protocol, a Bitcoin decentralized finance (DeFi) platform on the Stacks blockchain, experienced a significant exploit on June 6th, resulting in losses of approximately $8.3 million in digital assets. The vulnerability, identified as a flaw in the platform's self-listing verification logic, allowed an attacker to drain liquidity from multiple asset pools.

The stolen assets included approximately 8.4 million Stacks (STX) tokens, 21.85 Stacks Bitcoin (sBTC), 149,850 USDC, 149,850 USDT, and 2.8 Wrapped Bitcoin (WBTC). This incident ranks among the largest exploits in the Stacks ecosystem's history.

Reimbursement Plan

In a swift response, the Alex Lab Foundation, the organization supporting Alex Protocol, committed to a full reimbursement of affected users using its treasury reserves. Reimbursements will be issued in USDC tokens, calculated using the average on-chain exchange rates between 10:00 am UTC and 2:00 pm UTC on June 6th.

• Affected wallets will receive an on-chain notification by June 8th, including a personalized claim form.
• Users must submit the completed form with their receiving wallet address by June 10th.
• USDC payments will be distributed within seven days of claim verification.
• Users who do not receive a form are urged to contact the team via email.

While the precise technical details of the exploit remain undisclosed, Alex Protocol anticipates releasing a post-mortem report in the near future. This commitment to transparency is crucial in building trust and security within the DeFi ecosystem.

Previous Security Incident

This is not the first significant security breach for Alex Protocol. In May 2024, a separate exploit targeting the platform's cross-chain bridge infrastructure resulted in the loss of $4.3 million in cryptocurrency. This incident was potentially linked to the Lazarus Group, a North Korean cybercrime group.

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