On June 6, 2025, ALEX Protocol, a decentralized finance platform operating on the Stacks blockchain, suffered a substantial security breach that resulted in the loss of over 8.3 million dollars’ worth of digital assets.
The incident stemmed from a defect in the protocol’s self-listing verification logic, a shortcoming connected to limitations of the Stacks network. The defect let an attacker tamper with asset listings and pull the plug on several liquidity pools.
Following the breach, the ALEX Lab Foundation declared a complete compensation plan to reimburse all impacted individuals in USDC. This is part of an effort to restore the trust of users and make the users whole after the event of the hack.
Breakdown of the Exploit and Asset Losses
The assault took advantage of a particular flaw in the reasoning that the ALEX Protocol uses to verify assets that are self-listed. Because of this loophole, the assailant was able to circumvent the usual verification processes and pull off unauthorized withdrawals from several different pools.
The assets that were taken included a mix of STX, sBTC, USDC, USDT, and WBTC. Here is how the calculations of the losses were determined:
8,403,867.57 STX, around 5,691,255.93 dollars
21.85 sBTC, about 2,244,751.87 dollars
149,850 USDC/USDT, equal to 149,850.00 dollars
2.80 WBTC, worth 287,369.33 dollars
In total, the total value in USD of the premium exploit amounted to 8,373,227.13 dollars. This event raised some eyebrows and got people talking about what happened and how risks may be tied to these automated DeFi systems, especially when you consider the self-service nature of many of these protocols and the not-so-great on-chain controls that are supposedly there to protect users.
ALEX Announces 100 Percent User Compensation in USDC
Shortly after the attack, in a statement, the ALEX Lab Foundation confirmed that it would fully compensate all users affected by the exploit. They will make the reimbursement entirely in USDC, a stablecoin pegged to the US dollar, to avoid any further exposure to market volatility.
To guarantee equity, the foundation will compute every user’s indemnification using the mean on-chain exchange rates noted between 10:00 UTC and 14:00 UTC on the day of the assault, June 6, 2025. This time segment reflects the real timeframe in which the exploit took place and is designed to net the most precise asset valuations.
ALEX is taking a big financial step to preserve its integrity and show it is acting responsibly in the decentralized finance ecosystem. Its choice to pay back all the money stolen in the hack is significant and rare in this industry.
Claim Process and Timeline for Affected Users
ALEX has issued a clear schedule for users affected by this incident to follow in order to receive their reimbursement payments. By June 8, 2025, at 23:59 UTC, all done. impacted wallet addresses will receive a private, on-chain notification. This message will contain a direct link to a claims form that must be filled out in order for the user to be considered for reimbursement. ALEX has not yet specified when it will send out this notification.
The deadline for submitting the form and confirming the crypto wallet address is set for June 10, 2025, at 23:59 UTC. After this time, no forms will be accepted for USDC payment. The 1:1 USDC payment, if not converted before a future exchange date, may be converted into another currency or token that the user specifies at the time of filing.
The importance of acting quickly and checking all notifications has been emphasized by the team. Users are advised to email [email protected] for immediate help if they either do not receive a claim notice by the June 8 deadline or have any queries about the process.
The ALEX Lab Foundation has not altered its steadfast intent to replenish the fund. Every user affected by the exploit will be returned to pre-magic state — in full. Although the exploit did expose some of the platform’s structural issues, the vulnerabilities it found seem well contained. The ALEX Lab Foundation staff and engineers seem to want to right the ALEX ship without tipping it over in the process.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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