Alex Protocol Hack: Is Bitcoin DeFi Ready for Prime Time?

Alex Protocol Hacked for $8.3M: Will Users Really Be Repaid in Full?

Alex Protocol Hack – Bitcoin DeFi platform Alex Protocol, built on the Stacks blockchain, has suffered a major security breach, resulting in losses exceeding $8.3 million in digital assets. The exploit occurred on June 6, with the platform confirming the incident via an official X (formerly Twitter) post.

Exploit Triggered by Verification Logic Vulnerability

According to Alex Protocol, the attack stemmed from a vulnerability in its self-listing verification logic, which allowed the attacker to drain liquidity from multiple asset pools. The losses include approximately:

• 8.4 million STX tokens (Stacks)
• 21.85 sBTC (Stacks Bitcoin)
• 149,850 USDC and USDT combined
• 2.8 Wrapped Bitcoin (WBTC)

This breach is considered one of the largest exploits ever recorded in the Stacks ecosystem.

Full Reimbursement Plan in USDC

In response, the Alex Lab Foundation, which supports the protocol, announced that all affected users will be reimbursed using the platform’s treasury reserves. Compensation will be issued in USDC, based on the average onchain exchange rates between 10:00 am and 2:00 pm UTC on June 6.

Impacted wallets will receive an onchain notification by June 8, along with a personalized claim form. Users are required to submit the form with a receiving wallet address by June 10. Verified claims will be processed and paid out within seven days.

Second Hack in Two Months

This marks the second major security incident for Alex Protocol. In May 2024, a separate exploit targeting its crosschain bridge led to the unauthorized withdrawal of $4.3 million. That attack was attributed to the Lazarus Group, a well-known North Korean cybercrime organization. Blockchain analyst ZachXBT was involved in tracing stolen assets linked to the breach.

A full post-mortem report on the latest incident is expected soon.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.