Stacks Cryptocurrency Drops 31% After $8.3 Million Exploit

Stacks [STX] cryptocurrency experienced a significant drop of 31% following a major exploit on the Alex Protocol, a core decentralized finance (DeFi) project within the Stacks ecosystem. The exploit, which occurred on June 6, 2025, resulted in a loss of approximately $8.3 million, severely impacting the confidence of users and investors in the Stacks ecosystem. The breach was attributed to a flaw in Alex Protocol’s self-listing verification logic, allowing attackers to siphon liquidity from multiple asset pools.

The attackers managed to drain a substantial amount of assets, including 8.4 million STX tokens, 21.85 sBTC, 149,850 in combined USDC and USDT, and 2.8 Wrapped Bitcoin. This incident stands out as one of the most significant security breaches within the Stacks ecosystem, raising concerns about the network’s overall security.

In response to the exploit, Alex Lab, the foundation backing the Alex Protocol, has committed to fully reimbursing affected users. The reimbursement will be made in USDC, using the average of on-chain exchange rates taken between 10:00 UTC and 14:00 UTC on June 6, 2025. The foundation outlined a detailed plan, stating that users will receive an on-chain notification and a claim form by June 8. Submissions will close on June 10, and verified reimbursements will be completed within seven days. Users without a form can email the team for assistance.

This is not the first time Alex Protocol has faced a security breach. In May 2024, the project suffered a cross-chain bridge attack linked to North Korea’s Lazarus Group, resulting in a loss of $4.3 million. The team collaborated with on-chain analyst ZachXBT to trace the stolen funds across three wallets, although full recovery remains uncertain.

Despite these recurring security concerns, broader confidence in the Stacks ecosystem has not entirely vanished. According to the analyst's forecast, STX could recover and hit $0.89 in 2025, reflecting sustained investor confidence in the project’s long-term potential. The Alex Lab Foundation’s commitment to reimbursing affected users and addressing the security flaw demonstrates their dedication to restoring user trust and mitigating the fallout from the exploit.