Share this article
Bitcoin DeFi Tool Alex Lab Loses $4.3M in Hack, Offers 10% Bounty for Stolen Funds
The ALEX team proposed a 10% bounty on the total stolen funds in exchange for the return of 90% of assets.
Updated May 15, 2024, 7:54 a.m. Published May 15, 2024, 7:51 a.m.
Make us preferred on Google
- The DeFi protocol said it had identified the attacker.
- The stolen funds have been frozen by major exchanges.
Bitcoin DeFi application ALEX Lab was drained of over $4.3 million in various tokens early Wednesday after a suspected private key compromise attacked its bridging service.
Security researchers CertiK said the attackers likely caught hold of a private key that controlled ALEX’s XLink bridge, a service that lets users transfer tokens between different blockchains. The hacker transferred over $300,000 worth of bitcoin , $3.3 million worth of stablecoins and $75,000 worth of Sugar Kingdom (SKO) tokens.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
ALEX developers confirmed the hack in an X post in early European hours, claiming they knew the identity of the attacker. The team offered them a 10% bounty for the return of 90% of the stolen funds.
“ALEX Lab Foundation has identified the individual responsible for the recent security breach and is offering a resolution through a bounty arrangement,” the developers said. “ALEX assures that upon compliance, there will be no further pursuit or law enforcement involvement. This offer stands until May 18 at 0800 UTC.”
Funds associated with the hacker have been frozen by major exchanges to prevent further misuse, the team said.
Private key compromises are among hackers’ most common attack vectors. Some of the biggest crypto hacks, such as Ronin’s $650 million drain in 2022 and Harmony’s $100 million hack in the same year, were the result of poor private key security.
More For You
More For You
Real estate billionaire Barry Sternlicht is ready to tokenize assets, but says U.S. regulation blocks it
The $125 billion real estate firm wants to offer blockchain-based tokens to clients but is stalled by regulation.
What to know:
- Barry Sternlicht, whose Starwood Capital manages more than $125 billion in assets, says the firm is ready to tokenize real-world assets but is stymied by U.S. regulatory barriers.
- Sternlicht argues that tokenizing assets like real estate on blockchains could open new ways to raise capital and give investors access to illiquid markets.
- Praising the technology as "the future," he likens tokenization’s development stage to an earlier stage than that of artificial intelligence and says the world needs to catch up.
Top Stories
