The crypto ecosystem is once again shaken by a cyber attack. This time, the victim was Alex Protocol, a platform built on Bitcoin’s layer 2. The exploit, confirmed on June 6, 2025, resulted in the loss of $8.3 million in digital assets.
🧠 What is Alex Protocol?
Alex Protocol is a DeFi platform based on Stacks (STX), which leverages the security of the Bitcoin network to offer services such as lending, decentralized exchanges, and staking. It had positioned itself as one of the strongest emerging projects in the Bitcoin Layer 2 environment.
💥 What happened?
The Alex team reported that a critical bug in their smart contract was exploited, allowing an attacker to drain funds from their liquidity pools. Although the exact vector of the attack is still under investigation, it has already been confirmed that USDC, STX, and other tokens were affected.
🧾 What measures were taken?
The protocol was immediately paused to prevent further damage.
A compensation plan in USDC was launched for the affected users.
The community has been invited to submit verifiable claims to receive their refund.
The team is working on a complete audit of the code and promises security improvements in their contracts.
📉 Market impact
Alex's native token suffered a 27% drop following the news.
STX also saw a brief correction, although it partially recovered.
The incident reignited alarms about security in DeFi protocols, even those built on trusted networks like Bitcoin.
💬 Reflection for the community
This event is a powerful reminder: security in DeFi is not optional. Even with audits and good intentions, mistakes can cost millions. It is essential:
✅ Verify contracts before investing.
✅ Use non-custodial wallets with enhanced security.
✅ Diversify risk.
✅ Follow reliable information sources.
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