Bitcoin

DeFi

Bitcoin layer-2 developer Alex Lab believes the $4 million exploit it suffered in May is most likely linked to the notorious North Korean hacking consortium Lazarus Group.&nbsp;
In a June 25 <a href="https://x.com/ALEXLabBTC/status/1805415489717551402" target="_blank" rel="noopener nofollow">post</a>&nbsp;on X, Alex Lab drew attention to three wallet addresses hackers used on May 16 to drain funds from the <a href="https://cointelegraph.com/learn/what-is-bitcoin-a-beginners-guide-to-the-worlds-first-cryptocurrency">Bitcoin</a>-based decentralized finance (DeFi) protocol.
Additionally, the team shared they collaborated with independent blockchain sleuth ZachXBT to compile the evidence required to link Lazarus to the exploit. 
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/6affc2eb-43a3-4c50-b611-3406946dd6b5.png">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/ALEXLabBTC/status/1805415489717551402" target="_blank" rel="noopener nofollow">Alex Lab</a>
 </figcaption>
</figure>
On May 16, Alex Lab notified users on X that <a href="https://cointelegraph.com/news/alex-labs-freezes-3-9-million-exploited-funds-cexs-after-hack">attackers had exploited</a> its BNB Smart Chain bridge, siphoning off around $4.3 million worth of funds in the process.&nbsp;
The hackers also exploited around $13.7 million worth of the Stacks (<a href="https://cointelegraph.com/stacks-stx-price-index">STX</a>) token; however, some of the exploited funds were sent to centralized exchanges and subsequently frozen by the exchanges.&nbsp;
On June 20, Alex Lab shared the attacker had broadcast more than 11,800 STX transactions, using several DeFi protocols and bridges including Arkadiko, Bitflow and Allbridge to offramp the stolen STX.&nbsp;
At the time, the team shared the exploit involved hackers gaining access to the team’s private keys. However, the team assured users that the smart contracts of the Alex Protocol itself were never compromised.
Related: <a href="https://cointelegraph.com/news/alex-labs-recovery-plan-security-measures">Alex Labs rolls out post-exploit recovery plan</a>
The team <a href="https://cointelegraph.com/news/alex-labs-recovery-plan-security-measures">offered the attackers</a> a 10% bounty for the return of 90% of the stolen funds and promised not to continue legal action if the funds were returned. 
The attackers did not respond to Alex Lab’s bounty request. 
The price of the <a href="https://cointelegraph.com/learn/a-beginners-guide-on-blockchain-layer-2-scaling-solutions">Bitcoin layer-2</a> protocol’s native ALEX token has slumped 10% in the last week and is down 47% over the last month. It is currently trading for $0.07.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-06/45ff3eba-ea4d-4bd9-bd00-7dea4a706bfc.png">
 <figcaption style="text-align: center;">
 The price of the ALEX token has fallen nearly 50% in the last month. Source: CoinMarketCap
 </figcaption>
</figure>
Magazine — <a href="https://cointelegraph.com/magazine/bitcoin-layer2-sidechains-not-really-bitcoin-l2s/">‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters</a>

Alex Lab points to Lazarus Group after last month's $4M exploit

Cointelegraph

Other articles published on Jun 25, 2024

Shiba Inu Net Flow Decreases After 13 Trillion SHIB Influx

Will Bitcoin (BTC) Price Retest $58K Mark Before Kick Starting The Bull Run?

Is ButtChain the next big meme coin to break the Internet? Analysis of the 5 Best Meme Coins of 2...

Aave bounces from monthly lows on demand for DeFi returns

The Top Coins for High-Yield Investments

The Best Crypto Presale in June 2024, MoonBag Raises Over $2.9M; Can Dogwifhat & Chainlink Keep Up?

Join our free newsletter for daily crypto updates!