Alex Lab: Some of the stolen funds have been recovered and tracking continues, and mitigation measures for affected community members are being considered

PANews reported on May 16 that the Bitcoin decentralized finance (DeFi) tool Alex Lab released an attack incident update. Regarding the affected assets, the attacker conducted a targeted attack and took over the assets related to the ALEX liquidity pool. The administrator rights of a vault affect all assets in the vault, including approximately 13.7 million STX, of which approximately 3 million were sent to various CEXs, and the amount is still increasing, while the balance is retained in several wallets. So far, all aBTC, sUSDT, xBTC, xUSD, ALEX, atALEX, LiSTX, LUNR, SKO, CHAX, $B20, ORDG, ORMM, ORNJ, TRIO, TX20 and STXS have been restored. ALEX’s smart contract code and infrastructure were not compromised.

Regarding monitoring and actions, the attacker’s wallet is being closely monitored and all relevant CEXs have been notified. All known CEX accounts associated with the attackers have been frozen. In addition, all these exchanges have been asked to cease all deposit and withdrawal functions until further notice. To support efforts to track the stolen funds, multiple alerts have been set up to monitor the movement of funds from all suspected addresses believed to have been created by the attackers. Regarding fund recovery, a portion of the stolen funds have been identified and are being recovered from a CEX. We are actively working with other CEXs to go through the necessary processes to facilitate the return of more funds. Regarding legal measures, in order to further recover the stolen funds, we are prepared to file a police report and, if the attacker does not cooperate with us in a timely manner, receive police support to assist in the fund recovery efforts. In order to further monitor the attackers’ actions and prevent any further transfers of funds, current forensic data is being shared with all relevant CEXs.

Alex Lab also stated that since there is no guarantee that all stolen funds can be recovered, it is evaluating using the ALEX reserves held by the Alex Lab Foundation to fund a treasury grant program to support those affected by this difficult time. Communities affected by the attack. Additionally, the possibility of proposing a SIP to the Stacks community to destroy STX in wallets holding stolen funds that have not been recovered by their community and to re-mint new STX to affected community members is also being considered.

Prior to yesterday’s news, Alex Lab recently suffered a hacker attack and lost US$4.3 million.