Alex Labs rolls out post-exploit recovery plan


Alex Labs, a Bitcoin layer-2 (L2) developer, announced its roadmap to restore community trust and restart operations on its platform after a recent breach.

The Alex Labs Foundation has two ongoing governance votes, including the re-opening of pools and plans to roll out the migration of its native token and automated market maker (AMM).

Source: ALEXLabBTC

Recovery and governance.

The Alex Lab Foundation hosted an X Space on May 29, during which the team detailed the recovery process, answered community questions, and discussed governance.

“We are committed to restoring trust and resuming operations with enhanced security measures.”

The team has two ongoing governance votes: the Treasury Grant Program (TGP), which is fundamental to recovering community assets and the vote to re-open unaffected pools, including multiple Stacks (STX) pools.

The TGP governance vote aims to decide the best use of the recovered assets and other resources to benefit by allowing the community to choose from five options. However, choices three and four come with inherent risks due to the synthetic nature of the solutions.

“The risk is that if stacks price rises above say, $3, or if Alex Price were to drop below $0.13, there would be a shortfall in the collateral. That ratio of 1.5 wouldn’t hold. This could potentially lead to a de-pegging of the synthetic asset.”

While the community strongly desires to see the platform reopened “as soon as possible,” the Alex Lab Foundation indicated that “the benefit of reopening the pools versus the potential risk of doing so” must be balanced.

Related: Kaamel Technology to lead investigation into XLink’s $10M breach

Security efforts

The Foundation has taken measures to improve security to prevent future exploits in response to the recent hack.

These measures include partnering with Kaamel Technology “to investigate the incident,” incorporating a new smart-contract-based multisig security audit and collaborating with legal entities to recover the remaining stolen funds.

“Based on the movement of the stolen user assets by the attacker, we are working closely with our legal counsel, local law enforcement agencies, and centralized exchanges to locate, freeze and recover those stolen assets.”

Ongoing communication

The Alex Labs Foundation informed the community that it would be “holding a series of AMAs as time goes” on. 

“If [the community] have any more questions, particularly related to what we are doing, what the team is trying to do, please feel free to put your question in our Twitter, in our Telegram, and most importantly, please participate in the governance discussion.”

The governance votes are set to end on June 2 at 3:30pm UTC and will determine the future management of located, frozen, and recovered user funds.

Magazine: Web3 Gamer: Devs quit after Torque Drift 2 added crypto, big problem with MetaFighter