- The cryptocurrency industry has been shaken by hacking attacks on two major DeFi protocols, ALEX Lab and Sonne Finance, resulting in the theft of millions of dollars worth of cryptocurrency.
- On May 15, Bitcoin DeFi application ALEX Lab reported a hacking incident that resulted in the theft of over $4.3 million in various tokens.
- Just a few hours before the ALEX Lab incident, credit protocol Sonne Finance was the target of another cyber attack, with a staggering $20 million worth of cryptocurrencies being drained.
Two major DeFi protocols, ALEX Lab and Sonne Finance, have been hit by hacking attacks, leading to the theft of millions of dollars worth of cryptocurrency. This article provides an in-depth analysis of the incidents and their implications for the crypto industry.
4.3 Million Dollar Hack at Alex Labs
On May 15, Bitcoin DeFi application ALEX Lab reported a hacking incident that resulted in the theft of over $4.3 million in various tokens. Security researchers at CertiK believe that the attackers gained access to a private key controlling ALEX’s XLink bridge, a crucial service facilitating token transfer between different blockchains. The stolen funds included $300,000 worth of Bitcoin, $3.3 million worth of stablecoin, and $75,000 worth of Sugar Kingdom (SKO) tokens.
Response from ALEX Lab
Following the attack, ALEX Lab developers confirmed the breach and surprisingly claimed to have identified the culprit. In a bold move, they offered a 10% reward in exchange for the return of 90% of the stolen cryptocurrency and attempted to engage the hacker in active recovery negotiations. The team emphasized that the deadline for the hacker’s compliance was May 18 and promised that no legal action would be taken in exchange for cooperation.
Sonne Finance Hacked: $20 Million in Crypto Drained
Just a few hours before the ALEX Lab incident, credit protocol Sonne Finance was the target of another cyber attack. Web3 security firm Cyvers detected suspicious activity on the night of May 15, indicating an ongoing exploit targeting Sonne Finance’s USD Coin (USDC) and Wrapped Ether (WETH) contracts. Unfortunately, by the time Sonne Finance acknowledged the attack, the hacker had already fled with a staggering $20 million worth of cryptocurrencies, including WETH, VELO (VELO), soVELO, and Wrapped USDC (USDC.e).
Conclusion
These hacking incidents underscore the vulnerability of DeFi protocols and the need for enhanced security measures in the crypto industry. As the investigations continue, it remains to be seen whether the stolen funds can be recovered and what steps will be taken to prevent similar incidents in the future.
