Cryptocurrency news

Alex Labs' DeFi protocol lost $4.3 million in a hacker attack

Forklog / 15.05.2024 / 09:48
Alex Labs' DeFi protocol lost $4.3 million in a hacker attack

CertiK Alert analysts reported the hacking of the Alex Labs DeFi platform on the bitcoin network. The losses amounted to about $4.3 million. 

#CertiKInsight 🚨

We have seen a suspicious transaction affecting @ALEXLabBTC

Initial evidence points to a possible private key compromise.

Deployer of 0xb3955302E58FFFdf2da247E999Cd9755f652b13b upgrades to a suspicious implementation.

In total ~$4.3m worth of assets have… pic.twitter.com/02kiw2dFrm

— CertiK Alert (@CertiKAlert) May 14, 2024

Experts suspect a possible leak of private keys. 

According to on-chain data, the incident occurred after the contract updates of the Bridge Endpoint platform in the BNB Chain. After that, an unknown person withdrew 16 BTC, 3.3 million USDC and 2.7 million Sugar Kingdom Odyssey (SKO) from the protocol bridge. 

Calling the update operation actually changed the implementation address to an untested bytecode, making this change unnoticeable at first glance.

The hacker's address created two unverified contracts on May 10 and two more on May 14. Prior to this, there was no wallet activity.

After the updates began, the proxy address of the bridge contract triggered an untested function of another account, as a result of which the funds went to the criminal's wallet. 

According to analysts, it is possible that the attacker tried to attack the protocol on other networks, since Alex Labs contract updates were also initiated in Ethereum.

Representatives of the DeFi project confirmed the hacking of the XLink bridge. The team announced cooperation with many exchanges and the successful freezing of some of the stolen funds.

ALEX Security Update

We want to update our community about a recent exploit involving the XLink bridge. We are actively collaborating with exchanges, partners, and ecosystem contributors to address the situation. A significant amount of the funds associated with the hacker has…

— ᛤ ALEX 🟧 THE Finance Layer on Bitcoin ᛤᛤᛤ (@ALEXLabBTC) May 15, 2024

Alex Labs also added that they had already identified the identity of the hacker and offered him to return the assets for a 10% reward by May 18. 

Recall that on May 14, an attacker began to "siphon" funds from traders of the decentralized Equalizer exchange, stealing tokens worth tens of thousands of dollars. 

Earlier, on-chain researcher ZachXBT reported a possible hacking of the Bahrain-based Rain cryptocurrency exchange for $14.8 million.

Source
Alex Labs' DeFi protocol lost $4.3 million in a hacker attack
Recently News

© Token Radar 2024. All Rights Reserved.
IMPORTANT DISCLAIMER: All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.