On May 29, Alex Labs, a developer specializing in Bitcoin layer-2 (L2) technology, unveiled an elaborate recovery plan and bolstered security measures following a recent security breach. Acknowledging the pivotal role of the community, the company aims to restore trust and recommence platform activities. Emphasizing the implementation of robust security protocols and continuous governance, they underscore their commitment to safeguarding users’ assets and maintaining operational integrity.
Alex Labs Shared A Recovery Plan
During a recent X Space session, the Alex Labs Foundation unveiled its recovery strategy, aimed at tackling community concerns and governance matters head-on.
Currently, two pivotal governance votes are underway: one concerning the Treasury Grant Program (TGP), and the other revolving around the decision to reopen unaffected pools, including various Stacks (STX) pools.
The TGP vote primarily centers on determining the optimal utilization of recovered assets to serve the community’s interests. While five options have been presented, options three and four carry inherent risks due to the synthetic nature of the proposed solutions.
In particular, the foundation underscored the importance of striking a delicate balance between the advantages of reopening the pools and the potential risks involved.
“The risk lies in the possibility of a shortfall in collateral if the Stacks price surpasses $3 or if the Alex token price dips below $0.13,” explained a spokesperson for Alex Labs. “In such scenarios, the 1.5 ratio may not hold, potentially resulting in the de-pegging of the synthetic asset.”
In response to the breach, Alex Labs has rolled out new security measures to mitigate future exploits. These measures encompass collaborating with Kaamel Technology to probe the incident, integrating a smart-contract-based multi-sig security audit, and partnering with legal entities to recuperate stolen assets.
The governance votes are slated to conclude on June 2 at 3:30 p.m. UTC, determining the subsequent management of the recovered funds.
Gala Games Recent Hit By Security Breach
Gala Games, a prominent player in the blockchain gaming sphere, recently grappled with a security breach resulting in the unauthorized sale of 600 million GALA tokens, amounting to a staggering $23 million.
The breach, occurring on May 20, enabled a hacker to penetrate a Gala Games admin address, leading to the creation of 5 billion new GALA tokens with an approximate value of $200 million. CEO Eric Schiermeyer confirmed that lapses in internal controls were responsible for the incident.
Swift action was taken by Gala Games to mitigate further damage; they promptly froze the compromised wallet and disposed of the remaining 4.4 billion tokens that were unsellable. Presently, the company is collaborating with the FBI, the U.S. Justice Department, and international authorities in an effort to investigate the breach and bring the perpetrators to justice.
This unfortunate breach isn’t the first setback for Gala Games, as they previously suffered a loss of $130 million in a similar exploit back in 2021. Compounding their challenges are internal legal disputes between Schiermeyer and co-founder Wright Thurston, centered around allegations of mismanagement and theft.
