Bitcoin’s decentralized finance (DEFI) platform, Alex, recently suffered an attack, losing $8.3 million in user funds. This represents a second exploitation of stack-based projects in more than a year after the previous robbery of the North Korean infamous North Korea’s Lazarus Hackers Group.
Alex Protocol is a Victim of Self-Representative Verification Flaw
In a June 6 X post, the development team behind the Alex protocol announced the Defi project due to the fragility of its self-column verification logic, a security mechanism designed to prevent unauthorized asset listings. The failure is that the security system may allow bad actors to introduce malicious, unauthorized or fake assets to the Alex protocol and can be exchanged for legal assets.
By sliding through the logic of self-verification, the hacker was able to evacuate several asset pools, made of 8,403,867.57 stacks (STX), worth 5,691,255.93, 21.85 SBTC (2,244,751.87), $2,244,751.87) ($287,369.33) resulting in a total run of $8,373,227.13.
Alex Agreement Announces Pay Plan
The developers behind the Alex protocol have promised to use the Alex Lab Foundation Treasury to cover all user losses after the recent cyberattack. All compensation will be paid at USDC and paid based on the average chain exchange value of the stolen assets between 10:00 UTC – 14:00 UTC.
All affected wallets should receive a private link notice next to the claim form before 23:59 UTC on June 8. It is expected that the claimant should complete a form that should include the address of receiving the wallet and submit the deadline before the June 10 deadline.
The Alex Agreement Management Team further stated that all affected wallets should be fully compensated within 7 days of verification submission of the form. It is worth noting that all victims in question or those who fail to extend the notification emails by the emails listed in the notification by the specified deadline.
The Alex protocol is built on the Bitcoin network using stack chains. It is a popular Defi platform that provides a variety of services including loans, borrowing and transactions. In addition, Alex supports cross-chain bridges, enabling users to seamlessly transmit assets from other networks such as Ethereum and BNB smart chains.
As mentioned earlier, the DEFI project suffered previous vulnerabilities in May 2024, when Lazarus Group withdrew $4.5 million through the platform bridge of BNB Smart Chain Network.
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