A major security breach struck Alex Protocol on June 6. The exploit targeted a flaw in the platform’s self-listing verification logic. This vulnerability lets the attacker bypass safeguards and drain several Bitcoin and other digital asset liquidity pools. The total loss reached $8.3 million in digital assets.
Alex Protocol is built on the Stacks blockchain and offers DeFi services using Bitcoin. The attack targeted a conceptual flaw in the protocol’s smart contracts. The attacker exploited an on-chain limitation and withdrew assets in multiple currencies.
The loss was over 8.4 million STX, which was more than $5.6 million at that time. Around 21.85 sBTC was worth close to $2.2 million. In addition, the hacker stole 149,850 in stablecoins and 2.80 WBTC, which was worth around $287,000 at that time. The total loss incurred was $8,373,227.13.
Alex Lab to repay losses in USDC
The platform reacted in real-time. It declared complete reimbursement to all the affected users. The Alex Lab Foundation will indemnify through its treasury the damages in USDC. Users will be compensated based on exchange rates recorded during the period of the attack.
This rate will be the average between 10:00 and 14:00 UTC on June 6. All affected wallet addresses will receive a private notification by June 8. The notification will include a claim form that the users need to fill out and submit before June 10 at 23:59 UTC.
Bitcoin DeFi platform races to restore trust
They will also have to verify a receiving wallet address. Once that is confirmed, the team will dispatch USDC within seven business days. The platform has advised users to reach out to support if they do not receive a notification by the specified deadline.
This breach marks a significant moment for the Bitcoin DeFi space. Despite the loss, the Alex team has acted fast to rebuild trust. They continue to investigate the attack while reinforcing security systems. The goal remains to protect users and secure the platform against future threats.
