Crypto News Today – Alex Lab’s Bitcoin DeFi Tool Hit by 4.3M Dollars Hack: Promises 10% Bounty for Recovery

Alex Lab’s Bitcoin DeFi Platform Loses $4.3M in Breach, Announces 10% Bounty to Retrieve Funds

Crypto News- Early Wednesday saw a devastating blow to ALEX Lab’s Bitcoin DeFi application, with over $4.3 million in various tokens drained, shedding light on a suspected private key compromise targeting its bridging service.

Security experts from CertiK suggested that the assailants likely gained access to a crucial private key controlling ALEX’s XLink bridge—a pivotal service facilitating token transfers across different blockchains. The breach saw the hacker siphon off significant sums, including $300,000 worth of Bitcoin (BTC), $3.3 million worth of stablecoins, and $75,000 worth of Sugar Kingdom (SKO) tokens.

Developer Response: Offering a Bounty for Recovery

In a candid admission via an early European post, ALEX developers acknowledged the breach and hinted at identifying the perpetrator. The team’s response included an intriguing proposition—a 10% bounty for the safe return of 90% of the pilfered funds.

“ALEX Lab Foundation has pinpointed the individual behind the recent security breach and seeks resolution through a bounty program,” stated the developers. “Upon compliance, no further action or involvement from law enforcement will be pursued. This offer remains open until May 18 at 0800 UTC.”

To curb further misuse, major exchanges swiftly froze funds associated with the hacker—an essential step in containing the fallout.

Highlighting the Importance of Robust Private Key Security

The incident underscores the pervasive threat of private key compromises, a favored tactic among hackers. Notable crypto breaches, like Ronin’s staggering $650 million loss in 2022 and Harmony’s $100 million hack in the same year, serve as stark reminders of the critical need for robust private key security measures.

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