Oops, ALEX Protocol Just Got Hit by a $8.3 Million Heist!
Hackers Strike ALEX Protocol: Decentralized Finance (DeFi) Bitcoin Project Suffers $8.3 Million Attack
On June 6, 2025, the decentralized finance (DeFi) platform ALEX Protocol, based on the Bitcoin network using the Stacks blockchain, found itself in a tough spot. An exploit targeting its self-listing verification mechanism allowed hackers to bypass security checks, stealing a whopping $8,373,227.13 worth of assets - including Stacks (STX), Stacks Bitcoin (sBTC), USDC, USDT, and Wrapped Bitcoin (WBTC)[1][2][3].
Slipped through the cracks: The self-listing verification flaw
The self-listing verification logic, designed to prevent unauthorized asset listings, failed to catch the malicious attack. This oversight opened the door for hackers to sneak in their nefarious assets and cash out on legitimate assets[2][3].
Riding the storm: ALEX Protocol's response to the crisis
aleX Protocol and the Alex Lab Foundation vowed to take care of affected users, pledging to cover all losses using the foundation's treasury[2]. To compensate users, they'll be reimbursing the stolen funds in USDC stablecoins. The reimbursement amounts will be based on the average on-chain exchange rates between 10:00 UTC - 14:00 UTC on June 6, 2025[1][3][4].
By June 8, affected wallets should've received an on-chain notification together with a claim form. Users are required to fill out the form, including their receiving wallet address, and submit it before the deadline on June 10, 23:59 UTC[1][2]. ALEX Protocol's team promises to verify all claims and distribute USDC payments within seven business days following claim verification[1][2].
Users who haven't received a claim form by the deadline are encouraged to reach out via the email included in the announcement[1]. Let's hope this incident serves as a wake-up call for increased security measures, ultimately making the DeFi space a safer place for all!
[1] Enrichment Data: https://www.coindesk.com/alex-protocol-recovers-83-million-in-stolen-funds-following-exploit[2] Enrichment Data: https://cointelegraph.com/news/alex-protocol-to-repay-8-4-million-stacks-lost-in-self-listing-mini-exploit[3] Enrichment Data: https://decrypt.co/80916/alex-protocol-recovers-8-4-million-stolen-funds-seeks-to-regain-user-trust[4] Enrichment Data: https://medium.com/@alexprotocol/on-june-6-2025-an-exploit-occurred-on-alex-protocol-′9cff5c8d8519
In light of the $8.3 million heist on the ALEX Protocol, a decentralized finance (DeFi) platform that utilizes the Bitcoin network and the Stacks blockchain, some question the security of decentralized sports-betting platforms built on such systems. As the ALEX Protocol recovers and reimburses stolen funds in USDC stablecoins, it becomes crucial for DeFi platforms to take proactive measures to enhance security and counter potential threats in the likes of sports-betting and other decentralized finance applications.
%20Bitcoin%20Project%20Suffers%20%248.3%20Million%20Attack){kind=link}