Major Exploit Hits Bitcoin DeFi Platform
On June 6, Alex Protocol, a decentralized finance (DeFi) platform built on the Stacks blockchain, was exploited due to a critical vulnerability in its self-listing verification logic. This flaw allowed an attacker to drain liquidity from multiple asset pools, resulting in a loss of approximately $8.3 million in digital assets.
The stolen funds included:
- 8.4 million STX tokens
- 21.85 Stacks Bitcoin (sBTC)
- 149,850 USDC and USDT stablecoins
- 2.8 Wrapped Bitcoin (WBTC)
This incident ranks among the largest exploits in the Stacks ecosystem, raising significant concerns about security in Bitcoin-based DeFi platforms.
Reimbursement Plan for Affected Users
In a swift response, the Alex Lab Foundation, which supports the protocol, announced it will fully reimburse all affected users using funds from its treasury reserves.
Key details of the reimbursement process include:
- Compensation will be issued in USDC
- Reimbursement amounts will be based on average onchain exchange rates between 10:00 AM and 2:00 PM UTC on June 6
- Users will receive onchain notifications by June 8 with a personalized claim form
- Claim forms must be submitted by June 10
- USDC payments will be distributed within seven days of claim verification
Users who do not receive the form are urged to contact the team immediately via official communication channels.
Security Under Scrutiny
This is not the first time Alex Protocol has faced a major breach. In May 2024, the protocol suffered a $4.3 million exploit through its cross-chain bridge infrastructure. That attack was linked to the Lazarus Group, a North Korean cybercrime organization. The protocol worked with blockchain analysts to trace the stolen funds, but security vulnerabilities continue to plague the platform.
Post-Mortem and Future Outlook
Although the technical details behind the June 6 exploit have not yet been disclosed, Alex Protocol is expected to release a full post-mortem report. The platform has reiterated its commitment to user protection and plans to enhance its security systems to prevent future incidents.
