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

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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.

FAQs

What happened to ALEX Lab’s Bitcoin DeFi application?

ALEX Lab’s Bitcoin DeFi application experienced a significant breach, resulting in the loss of over $4.3 million in various tokens. The breach highlighted a suspected compromise of the application’s private key, particularly concerning its bridging service.

How did security experts characterize the breach?

Security experts from CertiK suggested that the attackers likely gained access to a crucial private key controlling ALEX’s XLink bridge. This breach enabled the hacker to drain substantial amounts of cryptocurrency, including $300,000 worth of bitcoin (BTC), $3.3 million worth of stablecoins, and $75,000 worth of Sugar Kingdom (SKO) tokens.

How did ALEX Lab’s developers respond to the breach?

ALEX Lab’s developers publicly acknowledged the breach via an early European post and hinted at identifying the perpetrator. In response, they proposed an intriguing solution—a 10% bounty for the safe return of 90% of the stolen funds. This offer remained open until May 18 at 0800 UTC.

For the latest in crypto updates, keep tabs on Crypto Data Space.

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

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