Altcoin Developers Announce Compensation After Huge Losses to Investors

ALEX altcoin developer Alex Lab, who experienced a major hack, announced that as of June 5, 2024, all revenue generated by the platform will be allocated to refund users affected by the recent hack.

The announcement came via an update shared on the X platform, where the company said, “We are committed to transparency and user compensation. Starting June 5, 2024, all ALEX revenues will be used to compensate users affected by the hack.”

Earlier in May, Alex Lab, a Bitcoin decentralized finance (DeFi) tool, was the victim of a cyberattack that resulted in the loss of $4.3 million. In response, the company offered an initial 10% reward for the recovery of the stolen funds. Alex Lab also announced that they had identified the attacker and that the stolen funds had been frozen by major exchanges.

Security firm CertiK said the hackers likely took control of the private keys that manage ALEX’s XLink bridge, a service that facilitates the transfer of tokens between different blockchains. The attackers then transferred $300,000 worth of Bitcoin (BTC), $3.3 million worth of stablecoins, and $75,000 worth of Sugar Kingdom (SKO) tokens.

*This is not investment advice.