Stacks [STX] down 31% after Alex Protocol exploit - Details

What led to STX falling off the bullish charts？

While market-wide weakness played a role, the real blow came from a major exploit on 06 June that hit the Alex Protocol – A core DeFi project on the Stacks blockchain.

Alex Protocols plan of action

Following the recent exploit, Alex Lab outlined a detailed reimbursement plan and committed to compensating affected users in USDC.

Compensation will be based on average exchange rates between 10:00–14:00 UTC on 6 June.

Users will receive an on-chain notification and a claim form by 8 June. Submissions will close on 10 June.

Once verified, reimbursements will be completed within seven days. Anyone without a form can email the team.

Not the first time!

This isn‘t Alex Protocol’s first exploit though. In May 2024, the project lost $4.3 million after a cross-chain bridge attack – Linked to North Koreas Lazarus Group.

The team collaborated with on-chain analyst ZachXBT to trace stolen funds across three wallets, though full recovery remains unclear still.

Despite recurring security concerns, broader confidence in the Stacks ecosystem hasnt vanished.

In fact, AMBCrypto analysts predict that STX could recover and hit $0.89 in 2025, reflecting sustained investor confidence in the projects long-term potential.