Connect with us

Hi, what are you looking for?

Editor's Pick

Alex Labs Reveals Roadmap to Restart Operations After Breach

Alex Labs, a Bitcoin layer-2 (L2) developer, announced a detailed recovery roadmap and enhanced security measures on May 29 in response to a recent breach.

The company recognized the role of the community and seeks to rebuild trust and resume platform operations. They claimed to focus more on stronger security protocols and ongoing governance.

Alex Labs Shared A Recovery Plan


In a recent X Space session, the Alex Labs Foundation laid out its recovery strategy, addressing community concerns and governance issues.

Two key governance votes are in progress: the Treasury Grant Program (TGP) and the decision to reopen unaffected pools, including multiple Stacks (STX) pools.

The TGP vote focuses on the best use of recovered assets to benefit the community. Five options were offered, although options three and four present risks due to the synthetic nature of the solutions.

Dear ALEX Community,
We are committed to restoring trust and resuming operations with enhanced security measures. Below is the roadmap for our re-opening:

Governance Votes are ongoing for:
Treasury Grant Program: https://t.co/CN48lJ92gA
Re-opening of Pools:… pic.twitter.com/o2J96uFHZS

— ᛤ ALEX THE Finance Layer on Bitcoin ᛤᛤᛤ (@ALEXLabBTC) May 29, 2024

Specifically, if the Stacks (STX) price exceeds $3 or the Alex token price drops below $0.13, there could be a shortfall in collateral, potentially leading to a de-pegging of the synthetic asset. The foundation highlighted the need to balance the benefits of reopening the pools against potential risks.

“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,” Alex Labs spokesperson said. “That ratio of 1.5 wouldn’t hold. This could potentially lead to a de-pegging of the synthetic asset.”

Alex Labs has implemented new security enhancements to prevent future exploits in response to the breach. These measures include partnering with Kaamel Technology to investigate the incident, incorporating a smart-contract-based multi-sig security audit, and collaborating with legal entities to recover stolen funds.

The governance votes will conclude on June 2 at 3:30 p.m. UTC and determine the future management of the recovered funds.

Gala Games Recent Hit By Security Breach


Gala Games, a prominent blockchain gaming platform, recently suffered a security breach leading to the unauthorized sale of 600 million GALA tokens, valued at $23 million.

The breach on May 20 allowed a hacker to access a Gala Games admin address and mint 5 billion new GALA tokens worth around $200 million. CEO Eric Schiermeyer confirmed that inadequate internal controls caused the incident.

Gala Games quickly mitigated further damage by freezing the compromised wallet and burning the remaining 4.4 billion unsellable tokens. The company is now working with the FBI, the U.S. Justice Department, and international authorities to investigate and apprehend those responsible.

This breach is not the first for Gala Games, which lost $130 million in a similar exploit in 2021. The company faces additional challenges, including ongoing internal legal battles between Schiermeyer and co-founder Wright Thurston over mismanagement and theft allegations.

The post Alex Labs Reveals Roadmap to Restart Operations After Breach appeared first on Cryptonews.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

You May Also Like

Stock

Boeing’s spaceflight program may reach a significant milestone Monday night with the launch of its Starliner spacecraft, carrying — at long last — two...

Investing

Arcade chain Dave and Buster’s plan to allow customer betting isn’t winning over everyone. Software company Lucra Sports announced on Tuesday that it was working with...

Top News

It appears increasingly possible that Donald Trump could face actual jail time before we ever get a verdict in any of his four criminal...

Stock

A 17-year-old boy handed himself in to police after admitting that he attacked a German politician on Friday. Police say that Matthias Ecke, the...

Disclaimer: InvestorsOnRetire.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 InvestorsOnRetire. All Rights Reserved.