- Alex Protocol starts a grant to repay users who lost over eight million dollars in a recent hack.
- Users must connect wallets and accept terms to claim reimbursements by the June seventeenth deadline.
- The exploit targeted liquidity pools and caused losses in STX sBTC aUSD and aBTC tokens.
Alex Protocol, a Bitcoin-focused decentralized finance platform, has introduced a Treasury Grant Program to reimburse users impacted by a recent exploit. The platform suffered losses exceeding $8.3 million due to a security breach on June 6.
Details of the Exploit
The attacker exploited a vulnerability in Alex Protocol’s self-listing verification logic. This flaw allowed unauthorized access to several liquidity pools. The breach resulted in approximately 8.4 million STX, 21.85 sBTC, 149,850 aUSD, and 2.8 aBTC drain. The total loss is estimated to be more than $8.3 million.
The incident affected multiple users, triggering swift action by Alex Protocol. The platform confirmed the exploit but has yet to release a detailed technical post-mortem report. A community member suggested the issue might relate to a “Stacks limitation.”
Treasury Grant Program Mechanics
The Treasury Grant Program offers compensation through a mix of original tokens and USDC equivalents. The structure varies by asset type lost during the exploit. Users with STX losses receive full reimbursement in USDC at a fixed rate of 0.68 USDC per STX.
Those holding sBTC will be reimbursed 100% in aBTC. aBTC holders will get 75% of their losses in aBTC, with the remaining 25% paid in USDC. The USDC rate for aBTC compensation stands at 102,734 USDC per aBTC. For aUSD losses, users receive 91% back in aUSD and 9% in USDC, at parity.
Claim Process and Deadlines
Affected users must connect their impacted wallets to the official grant interface. They then review their compensation offers and sign a confirmation message to accept the terms. Notifications and instructions for claiming funds were sent to affected addresses by June 8.
Payments will be sent to eligible Ethereum addresses by June 17. Alex Protocol will communicate claim deadlines through official channels. Users must accept grants before the deadline to receive reimbursements.
Background on Previous Security Issues
This is the second major exploit to hit Alex Protocol. In 2024, the platform faced a $4.3 million breach related to its cross-chain bridge infrastructure. At that time, developers suspected the North Korean hacker group Lazarus.
Initially, ALEX Lab offered a 10% bounty for the return of 90% of stolen assets. However, this offer was later withdrawn without explanation. The current Treasury Grant marks a new effort to restore user funds and trust.
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