Bitcoin DeFi Platform Alex Lab Hacked

Alex Lab, a Bitcoin-based DeFi platform, recently disclosed new details about a major hack it suffered in May. The incident involved a breach where attackers acquired private keys through a phishing attack, gaining full access to funds stored in one of their vaults.

The compromised assets included aBTC, sUSDT, XBTC, xUSD, ALEX, atALEX, LiSTX, SKO, CHAX, $B20, ORDG, ORMM, ORNJ, TRIO, TX20, and STXS. However, the platform clarified that its core smart contract and infrastructure were not compromised.

After gaining control, the attacker swiftly moved approximately 13.7 million STX, of which 3 million were sent to centralized exchanges (CEXs) like Binance and Kraken. Despite efforts to recover most funds, about $4 million worth remained in the process of retrieval, with no guarantees of full recovery.

Investigations revealed the attacker executed nearly 10,000 transactions within a month, dispersing STX tokens across numerous new addresses before funneling them into CEXs. By June 24, 8.3 million STX had been deposited into CEXs, complicating recovery efforts for the remaining 5.5 million STX still on-chain.

Forensic analysis, aided by crypto detective ZachXBT, uncovered significant evidence linking the attack to the Lazarus Group, a well-known North Korean hacking organization. The analysis traced transactions from the initial exploit to an address associated with Lazarus Group activities, confirming their involvement.

The revelation prompted Alex Lab to intensify collaborations with law enforcement, including the Singapore Police Force, and cybersecurity experts to recover stolen assets and address broader implications.

This incident highlights ongoing challenges for DeFi platforms in safeguarding against sophisticated cyber threats, emphasizing the importance of robust security measures and collaborative efforts with both traditional and blockchain-specific security experts.

As investigations progress and recovery efforts continue, the DeFi community awaits further developments in hopes of restoring confidence in decentralized financial services.