Stacks [STX] down 31% after Alex Protocol exploit – Details

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When Your Crypto Wallet Turns into a Black Hole! 💸😱

  • Oh, the irony! Alex Protocol’s little hiccup led to a loss of $8.3M, shaking the Stacks ecosystem’s confidence like a bad haircut.
  • Fear not! Alex Lab has promised full USDC reimbursement to affected users, because who doesn’t love a good refund story?

Stacks [STX] took a nosedive, plummeting to $0.6532 after shedding 1.37% in 24 hours, 9.64% in a week, and a staggering 31.12% over the past month. Talk about a dramatic fall from grace!

What led to STX falling off the bullish charts?

While the market was already feeling a bit under the weather, the real kicker came from a major exploit on June 6 that hit the Alex Protocol – a core DeFi project on the Stacks blockchain. Who knew DeFi could stand for “Definitely Flawed Infrastructure”?

In a statement posted on X, the Alex Protocol team revealed that the breach stemmed from a flaw in its self-listing verification logic. Because, of course, who needs security when you have optimism?

The attacker exploited this flaw to siphon liquidity from multiple asset pools, casting a shadow over the network’s security outlook. It’s like leaving your front door wide open and wondering why your TV is missing!

This latest exploit on the Alex Protocol stands out as one of the most significant security breaches within the Stacks ecosystem. In fact, according to official disclosures, the attackers managed to drain approximately 8.4 million STX tokens, 21.85 sBTC, 149,850 in combined USDC and USDT, and 2.8 Wrapped Bitcoin. Ouch! That’s a major blow to the platform’s liquidity!

Alex Protocol’s plan of action

In a bid to restore user confidence and mitigate the fallout, the Alex Lab Foundation, which backs the protocol, has committed to fully reimbursing affected users by drawing from its treasury reserves. Because nothing says “trust us” like a refund!

Remarking on the same, the post noted,

“Using the ALEX Lab Foundation treasury, we will cover 100% of each affected user’s loss, paid in USDC. To calculate each reimbursement, we will use the average of on-chain exchange rates taken between 10:00 UTC and 14:00 UTC on June 6, 2025.”

Following the recent exploit, Alex Lab outlined a detailed reimbursement plan and committed to compensating affected users in USDC. Because who doesn’t love a good old-fashioned reimbursement plan?

Compensation will be based on average exchange rates between 10:00–14:00 UTC on June 6. Users will receive an on-chain notification and a claim form by June 8. Submissions will close on June 10. It’s like a game show, but with your money!

Once verified, reimbursements will be completed within seven days. Anyone without a form can email the team. Because nothing says “we care” like a customer service email!

Not the first time!

This isn’t Alex Protocol’s first exploit, though. In May 2024, the project lost $4.3 million after a cross-chain bridge attack – linked to North Korea’s Lazarus Group. Because why not add a little international intrigue to the mix?

The team collaborated with on-chain analyst ZachXBT to trace stolen funds across three wallets, though full recovery remains unclear still. It’s like a treasure hunt, but with less treasure and more disappointment!

Despite recurring security concerns, broader confidence in the Stacks ecosystem hasn’t vanished. In fact, AMBCrypto analysts predict that STX could recover and hit $0.89 in 2025, reflecting sustained investor confidence in the project’s long-term potential. Because who doesn’t love a good comeback story?

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2025-06-08 06:22