Crypto Chaos! Alex Protocol’s $8M Hack Gets a Flashy Reimbursement Plan

by

Crypto Chaos! Alex Protocol’s $8M Hack Gets a Flashy Reimbursement Plan

Oh, the glamorous world of decentralized finance! Bitcoin-focused Alex Protocol, famous for its penchant for drama, has decided to throw a little cash at its unlucky users after a recent misadventure that cost over $8 million. Yes, take a moment—wipe away those tears and check out the fancy new Treasury Grant Program they’ve cooked up. Because nothing says “we care” like pocket change after a digital heist. 🎩💸

Crypto hack

According to their very official June 8 announcement, the heroic tale includes providing financial support through a mix of shiny original tokens and USDC. Apparently, depending on what precious asset you lost, you might get a little something back—hope that helps with your shattered digital dreams.

Financial support

To claim their bounty, users must connect their wallets to the official grant portal (fancy, right?), look at what they’re owed, and then sign some sort of digital “we accept these terms” thing—because signing is the new hugging. All very high-tech, very reassuring. 🤖

Now, let’s dig a little deeper into the mess: on June 6, a hacker or some mysterious digital villain targeted several liquidity pools. The platform admits that a vulnerability in its self-listing checks was exploited, draining approximately 8.4 million STX, 21.85 sBTC, 149,850 aUSD, and 2.8 aBTC. Total losses – a cool $8.3 million. No big deal, just a little Liquid Assets Bubble Burst, right? 🥂

Exploit moment

Alex Lab hasn’t published a detailed technical post-mortem yet, but one wise community member speculates that it might have something to do with a “Stacks limitation,” which sounds suspiciously like “oops, we messed up but can’t fix it.” The Twitter sage, _(@LNow_), admitted he initially misunderstood how the contract worked but now suspects the problem might be rooted in “Stacks”—a wonderful word that just screams “we vaguely know what we’re doing.”

I was wrong with my initial assessment of this hack – I didn’t understand fully how ALEX contract was meant to work.

But now I can confirm it was Stacks limitation that theoretically can be mitigated, but in practice I don’t think it is feasible.

— _(@LNow_) June 6, 2025

As for payout specifics: affected users will receive their compensation based on an average of prices from a chatty 10:00 am to 2:00 pm UTC period during the incident. Notifications were sent out like carrier pigeons by June 8. Because nothing says “trust” like checking the on-chain prices during a “crisis.”

The remuneration plan includes full USDC reimbursement for STX holdings at a fixed rate of 0.68 USDC/STX. Because everyone loves a fixed rate, right? 🥱

For those who lost sBTC, they get 100% back in aBTC; aBTC folks get 75% of their losses in aBTC, and the remaining 25% in USDC at an oddly specific rate of 102,734 USDC per aBTC. For aUSD losers, a generous 91% will be paid in aUSD, with the remaining 9% in USDC—parity or something close to it. Economics, am I right? 💸

Support payments are supposed to grace eligible Ethereum addresses by June 17. Remember, you have to accept the grants—details coming soon via official channels, which basically means keep refreshing your inbox like it’s the latest TikTok trend.

This isn’t Alex Protocol’s first rodeo with a breach; last year, they took a hit of $4.3 million via their cross-chain bridge, allegedly involving North Korean hackers from Lazarus. Because of course, it’s always North Korea. The platform initially tried to offer a 10% bounty to recover 90% of the assets but, surprise, the offer vanished faster than your last Tinder date, without any clear explanation. Classy.

Read More

2025-06-09 10:28