Alex Protocol, a decentralized Bitcoin (DEFI) decentralized financing platform on the Stack Blockchain, underwent a feat on June 6, which led to $ 8.3 million in digital assets.
In an X announcement, Alex Protocol said that the violation had been caused by a vulnerability in his self-isolated verification logic. The striker used the fault to drain the liquidity of several asset pools.
The Bitcoin DEFI platform said that the attackers had siphone approximately 8.4 million batteries (STX), 21.85 Bitcoin (SBTC), 149,850 batteries in USDC (USDC) and USDT (USDT) and 2.8 Bitcoin wrapped (WBTC). The incident is one of the largest exploits of the battery ecosystem to date.
In response to the incident, Alex Lab Foundation, the organization supporting the protocol, is committed to fully repaying the affected users using its cash reserves.
Cointelegraph contacted the Alex protocol via his X account but did not receive an answer at the time of publication.
Alex protocol to reimburse assigned users after exploitation
According to Alex Lab, compensation will be issued in USDC tokens. The protocol will base its reimbursement calculations on the exchange rates of ONCHAIN MEDERS between 10:00 am UTC and 2:00 pm UTC on the day of the attack.
Alex Lab said that the portfolios affected by the attack will receive an onchain notification before June 8, including a personalized complaint form. Users must submit the completed form with a reception portfolio address by June 10.
The team said it would check the complaints submitted and distribute USDC payments within seven days. Users who do not receive a form have been invited to contact the team by e-mail.
The team has not revealed the technical mechanisms behind the feat but should publish a post mortem relationship.
Alex Protocol struck by another hack in May 2024
This is not the first security incident in which Alex Protocol lost millions. In May 2024, the DEFI platform underwent a feat involving its cross-bridging infrastructure. The incident led to the unauthorized withdrawal of $ 4.3 million in crypto from the platform.
The DEFI protocol said that the May feat was probably linked to the North Korean group of Lazarus cybercrime. The team highlighted three portfolios used in the attack and said they worked with the analyst of the Blockchain Zachxbt to trace stolen assets.
