$8.3M Exploit Hits ALEX Protocol: Bitcoin DeFi Platform Hacked Again
The Bitcoin-based decentralized finance (DeFi) platform, ALEX Protocol, has been exploited for $8.3 million. This marks the second major attack on the platform in less than a year. The exploit was attributed to a vulnerability in the protocol’s self-listing verification logic, a security mechanism designed to prevent unauthorized asset listings. Hackers bypassed this system, draining various asset pools, including Stacks (STX), sBTC, USDC/USDT, and WBTC, resulting in significant losses. The stolen assets totaled 8,403,867.57 STX ($5,691,255.93), 21.85 sBTC ($2,244,751.87), 149,850 USDC/USDT ($149,850), and 2.80 WBTC ($287,369.33). In response, ALEX Protocol announced a compensation plan, pledging to cover all user losses from its ALEX Lab Foundation Treasury. Affected users were notified on-chain and provided with a claim form to submit by June 10th, 2025, with compensation in USDC to follow within seven days of verification. This incident underscores the significant risks associated with DeFi platforms, highlighting the crucial need for robust security measures and thorough vulnerability assessments. The previous exploit in May 2024 involved the Lazarus Group, a North Korean hacking entity, stealing $4.5 million via the platform’s bridge on the BNB Smart Chain. The ALEX Protocol, built on the Stacks blockchain, offers various services including lending, borrowing, and trading, and supports cross-chain bridges for asset transfers between different networks like Ethereum and BNB Smart Chain. This latest incident serves as a stark reminder of the ongoing challenges in securing DeFi platforms and protecting user funds.
(Source: https://bitcoinist.com/bitcoin-defi-project-alex-protocol-in-8-3m-exploit/)
