Stacks (STX) witnessed a sharp price drop on the chart, down to $0.665 after a decline of nearly 1% in 24 hours, 9.64% in a week, and evaporating 31.12% in the past month.
What caused STX to fall off the growth chart?
Despite being affected by overall market weakness, the real blow came from the major exploit on June 6 that struck Alex Protocol, a core DeFi project on the Stacks blockchain.
In a statement posted on X, the development team of Alex Protocol revealed that the breach originated from a vulnerability in its token validation logic. The attacker exploited this vulnerability to withdraw liquidity from multiple asset pools, casting a shadow over the network's security prospects.
The latest exploit on the Alex Protocol is one of the largest security breaches in the Stacks ecosystem.
In fact, according to official information, the attackers withdrew approximately 8.4 million STX tokens, 21.85 sBTC, 149,850 USDC, and USDT along with 2.8 Wrapped Bitcoin, significantly impacting the platform's liquidity.
Alex Protocol's action plan
In an effort to restore user trust and mitigate the fallout, the Alex Lab Foundation, the supporting entity of the protocol, has committed to fully reimbursing affected users by withdrawing funds from its reserve.
“Using the reserve funds of the ALEX Lab Foundation, we will cover 100% of the losses for each affected user, to be paid in USDC. To calculate the reimbursements, we will use the average on-chain exchange rate taken during the period from 5:00 PM to 9:00 PM on June 6, 2025 (Vietnam time).”
After the recent exploit, Alex Lab has outlined a detailed reimbursement plan and committed to compensating affected users in USDC. Compensation will be based on the average exchange rate from 5:00 PM to 9:00 PM on June 6.
Users will receive on-chain notifications and reimbursement request forms before June 8. The forms must be submitted before 6:00 AM on June 11. After verification, reimbursements will be completed within seven days. Anyone who does not receive a form can email the development team.
Not the first time!
However, this is not the first time Alex Protocol has been exploited. In May 2024, the project lost $4.3 million after a cross-chain bridge attack, allegedly linked to North Korea's Lazarus hacker group.
The development team has collaborated with on-chain analyst ZachXBT to track the stolen funds across three wallets, although it remains unclear whether a full recovery is possible.
Despite security concerns, confidence in the Stacks ecosystem has not disappeared.
In fact, analysts predict that STX could recover and reach $0.89 in 2025, reflecting investors' sustained confidence in the project's long-term potential.
