Alex Protocol, a decentralized finance platform built on Bitcoin, has launched a Treasury Grant Program aimed at reimbursing users affected by a recent security breach that saw more than $8 million drained from its liquidity pools.
The announcement, made on June 8, outlines a compensation scheme that will return lost funds in a mix of original assets and USDC equivalents, depending on the type of token affected. Impacted users are required to connect their compromised wallets to the grant portal, review their personalized payout details, and sign a confirmation message to finalize the claim.
I’m glad to see quick action by the ALEX team to resolve the situation for users, but want to be very clear: it is not a Stacks limitation or vulnerability that caused this exploit.
Having spoken to multiple experienced, independent Stacks developers, the exploit was likely… https://t.co/p79xtQiwh4
— Adriano (@AdrianoDiLuzio) June 6, 2025
The exploit, which occurred on June 6, was traced to a vulnerability in Alex Protocol’s self-listing verification logic. The attacker was able to bypass internal checks and siphon off roughly 8.4 million STX, 21.85 sBTC, 149,850 aUSD, and 2.8 aBTC, with total damages exceeding $8.3 million. While the team has yet to release an official post-mortem, speculation from the community suggests the incident may be tied to limitations within the Stacks blockchain framework.
In a detailed update, Alex Protocol explained that reimbursement calculations were based on average on-chain asset prices recorded between 10:00 am and 2:00 pm UTC on the day of the incident. Affected wallet addresses were notified with individual compensation offers by June 8.
Eligible users will receive their funds via Ethereum wallets by June 17, with the deadline to accept the terms to be announced through Alex Protocol’s official communication channels.
The Alex Labs Foundation announced its plans to regain community trust and restart its platform following the recent security breach. During a May 29 X Space session, the team outlined the recovery steps, which include initiating two governance votes focused on reopening pools and migrating its native token and automated market maker (AMM).
Following the latest breach, ALEX Lab initially extended a 10% bounty for the safe return of 90% of stolen assets. However, that offer has since been withdrawn without further explanation.
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