Alex Protocol lost $8.3M in a June 6 exploit due to a smart contract vulnerability.
Affected users to be reimbursed in USDC via a structured claims process by June 10.
This is Alex Protocol’s second major breach after a $4.3M exploit in May 2024
The decentralized finance platform called Alex Protocol which operates on the Stacks blockchain with Bitcoin suffered a major exploit on June 6. The attack caused approximately $8.3 million worth of digital assets to be lost from the Stacks network which ranks this incident among the largest in the ecosystem. A weakness in the platform’s self-listing verification system enabled the attacker to extract multiple types of assets.
Alex Protocol Confirms $8.3M Exploit Amid Security Breach on Stacks Network
The attacker managed to drain 8.4 million Stacks tokens, 21.85 Stacks Bitcoin, 149,850 USDC, 149,850 USDT, and 2.8 Wrapped Bitcoin. The protocol quickly acknowledged the breach through its official X channel and attributed the exploit to a flaw in the smart contract’s verification logic.
The Alex Lab Foundation, which oversees the platform’s operations, responded by announcing a full reimbursement plan. The foundation confirmed that affected users will receive compensation in USDC stablecoins through a structured and timely claims process.
Structured Reimbursement Plan Begins
Following the exploit, the team at Alex Lab stated it would distribute personalized claim forms to affected wallets by June 8. These onchain notifications will include the required documentation and wallet address submission forms for claim verification.
Users must complete and submit the forms no later than June 10. The compensation amounts will be calculated using the average onchain exchange rates between 10:00 am and 2:00 pm UTC on the day of the exploit.
Once verified, the claims will be processed and USDC reimbursements will be distributed within seven days. Any user who does not receive a notification has been advised to contact the team directly through their official email support.
The platform has not yet released a technical breakdown of the exploit. However, a post-mortem report is expected in the coming weeks, outlining the full scope of the vulnerability and the measures being taken to prevent future incidents.
Second Exploit Within Weeks Raises Concerns
This marks the second major security breach involving Alex Protocol in recent months. In May 2024, the platform faced another attack through its crosschain bridge infrastructure. That incident resulted in the unauthorized withdrawal of $4.3 million in crypto assets.
Security experts believed that the Lazarus Group from North Korea was behind the earlier breach because they are known to attack cryptocurrency platforms. Blockchain investigator ZachXBT worked with the team to track down stolen funds and discover the associated wallets.
With two back-to-back attacks, the Alex Lab Foundation is now under pressure to strengthen its platform’s security architecture. The team has yet to disclose specific measures but indicated that enhanced protocol updates are in development to address emerging threats in decentralized finance.
