Crypto News – Alex Lab Blames Lazarus Group for $4M Cyber Attack

Crypto News – Alex Lab Links $4M Cyber Heist to Lazarus Group

Crypto News- Bitcoin layer-2 developer Alex Lab has pointed fingers at the infamous North Korean hacking group, Lazarus Group, regarding a recent $4 million exploit in May. In a detailed report posted on X on June 25, Alex Lab outlined the findings of their investigation into the cyber attack.

The Exploit: Draining Funds from DeFi Protocols

On May 16, hackers targeted the Bitcoin-based decentralized finance (DeFi) protocol, utilizing three wallet addresses to drain approximately $4.3 million worth of funds. The attack also affected the Stacks (STX) token, resulting in around $13.7 million in losses. Notably, some of the stolen funds were intercepted by centralized exchanges, preventing further losses.

Tracing the Culprits: Collaboration with Blockchain Sleuth ZachXBT

Alex Lab collaborated with blockchain investigator ZachXBT to compile evidence linking Lazarus Group to the exploit. The investigation revealed over 11,800 STX transactions orchestrated by the attackers through various DeFi protocols and bridges.

Response and Offer: Bounty for Stolen Funds Return

In an attempt to mitigate the damage, Alex Lab offered the attackers a 10% bounty for the return of 90% of the stolen funds, with a promise not to pursue legal action. However, the hackers did not respond to the offer.

Market Impact: ALEX Token Price Plummets

Following the exploit, the native token of the Bitcoin layer-2 protocol, ALEX, experienced a significant decline in value. Over the past week, its price has dropped by 10%, while the monthly decline stands at 47%, currently trading at $0.07.

Despite the setback, Alex Lab reassured users that the integrity of the Alex Protocol’s smart contracts remained intact throughout the incident.

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