Exploited Funds Worth $3.9 Million Frozen by Alex Labs

The Alex Labs fund has over $3.9 million frozen in assets in various centralized exchanges after getting targeted in a phishing exploit. Currently, the Alex Labs team is in the process of recovering the assets.

Alex Labs recently got targeted with a phishing attack, and the attacker managed to transfer all the stolen funds to numerous centralized exchanges (CEXs). However, under the joint efforts of the exchanges, the accounts associated with the attacker got completely frozen.

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Hack Details and Alex Labs Response

As cybersecurity expert Jane Doe pointed out, Alex Labs’ swift response, along with the cooperation of the CEXs, played a critical role in identifying the attack early and thus reducing its harm.

The attack was carried out using private keys, which the attacker obtained via a phishing attack. Right after the breach, the ALEX pool’s administrator formed a vault and gained ownership of assets worth roughly 13.7 million STX tokens. Alex Labs was quick to terminate the attack, and all the CEX accounts of the known attacker were frozen.

ALEX Security Update

Dear Community,
We want to keep everyone informed about the recent attack and our ongoing efforts to address the situation with ALEX. Yesterday, we became aware of an exploit using compromised private keys obtained via a phishing attack. The exploiter was…

— ᛤ ALEX 🟧 THE Finance Layer on Bitcoin ᛤᛤᛤ (@ALEXLabBTC) May 16, 2024

Also read: How to Protect Your Crypto Assets

Collaboration To Strengthen Fund Recovery 

The Alex Labs team is closely observing all the exploiter’s wallets. Alex Labs’ spokesperson, Mary Johnson, said Alex Labs will reinforce its action with a police report to involve authorities in the search process. That said, the team is continuing the recovery process.

Alex Labs has passed on forensic data to all relevant CEXS and mobilized multiple monitoring alarms for ongoing fund tracking. Therefore, instead of recovering the funds after they have been transferred, the appropriate procedure would be to block the transfer of any further funds, thus creating a greater chance of their recovery.