Stacks

Bitcoin

Alex Lab’s XLink, a Bitcoin bridge, has partnered with Fireblocks and Ancilia in response to a recent security breach involving $10 million in user funds.
The collaboration with Fireblocks will introduce multiparty computation (MPC) technology to XLink’s wallet and smart contract management.&nbsp;
In a written Q&amp;A with Cointelegraph, Chiente Hsu, CEO and co-founder of Alex, explained:
<blockquote data-ct-non-breakable="true">
 “[The] partnership with Fireblocks will implement two-of-three multiparty computation wallets to hold all these user assets, with one key held by the validator network of Bitcoin Oracle (that validates the XLink bridging events), another key held by Fireblocks and the last key held by Coincover who provides the disaster recovery service.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/xlink-kaamel-technology-10m-breach-investigation" rel="noopener noreferrer nofollow">Kaamel Technology to lead investigation into XLink's $10M breach</a>
<h2 data-ct-non-breakable="true" id="new-security-measures">New security measures</h2>
XLink’s partnership with Ancilia, a Web3 security firm, will provide continuous monitoring and real-time threat detection, offering instant alerts and proactive breach prevention measures.
Hsu explained that the “source of the hack” was a private key leak with “admin access” to a smart contract holding user assets, adding that:
<blockquote data-ct-non-breakable="true">
 “The partnership with Fireblocks will bring maximal security to our user assets, which has been planned for some time (originally scheduled for late June roll-out), but the recent incident meant we are now accelerating its deployment.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/alex-labs-recovery-plan-security-measures" rel="noopener noreferrer nofollow">Alex Labs rolls out post-exploit recovery plan</a>
<h2 data-ct-non-breakable="true" id="alex-security-update">Alex security update</h2>
The team released a security update on June 17, explaining that the attacker responsible for the breach had broadcast over 9,700 transactions.&nbsp;
According to the X post, traceable transactions rose from 300 to almost 10,000 without signs of slowing as new wallet addresses were created to disperse the stolen Stacks (STX) funds.
<blockquote data-ct-non-breakable="true">
 “[...]the number of attacker’s unique addresses has grew from around less than 100 to more than 4,700+ addresses in the span of 7 days. Smaller amounts of STX are transferred to thousands of new addresses, which then are later sent to CEXs.”
</blockquote>
<figure data-ct-non-breakable="true"><img src="https://s3.cointelegraph.com/uploads/2024-06/e794f9c5-b878-4547-8ce4-3ee7adb66193.png" alt="" title="">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/ALEXLabBTC/status/1802565902010826873" target="_blank" rel="noopener noreferrer nofollow">ALEX Labs</a>
 </figcaption>
</figure>
Related: <a href="https://cointelegraph.com/news/bitcoin-bridge-xlink-hack-recovery" rel="noopener noreferrer nofollow">Bitcoin bridge XLink resurrection underway post $10M hack</a>
<h2 data-ct-non-breakable="true" id="ongoing-security-efforts">Ongoing security efforts</h2>
The new partnership with Fireblocks and Ancilia is part of XLink’s broader strategy to improve the security and management of assets on the Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) bridge.
XLink has also collaborated with Cobo, a digital asset custody provider, to integrate MPC technology and “establish new security standards in the blockchain industry.”&nbsp;
XLink continues to focus on facilitating safe BTC utility across multiple blockchains through its omnichain liquidity network.
Magazine: <a href="https://cointelegraph.com/magazine/musk-promises-ban-on-apple-greenpeace-calls-for-bitcoins-pos-and-other-news-hodlers-digest-june-9-15/" rel="noopener noreferrer nofollow">Musk promises ban on Apple, Greenpeace calls for Bitcoin’s PoS, and other news: Hodler’s Digest, June 9-15</a>

XLink onboards Fireblocks, Ancilia to prevent another $10M hack

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Cointelegraph

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