By 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.
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