June 5, 2024
alex labs
Bitcoin News

Alex Labs Unveils Post-Breach Recovery Plan

Recovery and Governance

Alex Labs, a prominent developer of Bitcoin layer-2 (L2) solutions, has announced a comprehensive recovery plan to rebuild community trust and resume operations following a recent security breach. The Alex Labs Foundation is conducting two crucial governance votes, focusing on reopening pools and migrating its native token and automated market maker (AMM).

During an X Space session on May 29, the Alex Labs team detailed their recovery strategy, addressed community concerns, and discussed governance measures. “We are committed to restoring trust and resuming operations with enhanced security measures,” the team emphasized.

Governance Votes and Risk Management

Central to the recovery plan, the Alex Labs Foundation is holding two significant governance votes. The Treasury Grant Program (TGP) is designed to recover community assets, while another vote concerns reopening unaffected pools, including several Stacks (STX) pools.

The TGP vote offers five options for using recovered assets and resources. However, two options carry risks due to their synthetic 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,” the team explained. Despite the community’s eagerness to reopen the platform quickly, Alex Labs stressed the importance of balancing benefits and risks to ensure sustainable operations.

Enhanced Security Measures

In response to the recent hack, Alex Labs has implemented several security enhancements. Partnering with Kaamel Technology, the team is investigating the incident and has incorporated a new smart-contract-based multisignature security audit. Additionally, they are working 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,” the team stated.

Ongoing Communication and Community Involvement

Alex Labs is committed to maintaining open communication with its community. The Foundation will hold a series of AMAs to address any further questions and encourage active participation in governance discussions. “If [the community] has any more questions, particularly those related to what we are doing or what the team is trying to do, please feel free to put your question on our Twitter, in our Telegram, and most importantly, please participate in the governance discussion.” The governance votes, set to conclude on June 2 at 3:30 p.m. UTC, will play a critical role in determining the future management of recovered user funds and the overall recovery plan for Alex Labs.

Image by vectorjuice on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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