Bitcoin DeFi Tool Alex Lab Loses $4.3M in Hack, Offers 10% Bounty for Stolen Funds

As a researcher with extensive experience in the field of blockchain security, I’m deeply concerned about the recent attack on Bitcoin DeFi application ALEX Lab. The stolen funds, worth over $4.3 million in various tokens, were likely obtained through a private key compromise that allowed the attacker to control ALEX’s XLink bridge.

As a financial analyst, I’d rephrase that statement as follows: Yesterday, around $4.3 million worth of different tokens were siphoned out from the Decentralized Finance (DeFi) application ALEX Lab on Bitcoin‘s network. This unfortunate incident is strongly suspected to be the result of an unauthorized access to a private key, which subsequently targeted the platform’s bridging service.

As a crypto investor, I’ve received disheartening news from the ALEX team this morning in Europe. They’ve confirmed a hack that resulted in the theft of some funds, and they believe they’ve identified the culprit. In an attempt to rectify the situation, the team has announced a 10% bounty for the safe return of 90% of the stolen assets.

The ALEX Lab Foundation has discovered who is behind the latest security incident and proposes a settlement via a bounty program. If the individual meets the conditions, there will be no more investigation or legal intervention from our side. This opportunity lasts until May 18, 0800 UTC.

Major exchanges have blocked access to the funds linked to the hacker to halt any additional misuse, according to the team.

Hacking into private keys is a favored method for cybercriminals. Major crypto heists, like the $650 million theft from Ronin in 2022 and Harmony’s $100 million breach in the same year, were instigated by weak security surrounding these private keys.