Hacks on DeFi Protocols Sonne Finance and ALEX Lab Result in $24M Loss

By: Isha Das

In a major security breach, two DeFi projects, Sonne Finance and ALEX Lab, have faced significant exploits leading to an overall loss of over $24 million. Sonne Finance, a decentralized liquidity provider, fell prey to a $20 million exploit on its Optimism network-based contracts for USDC and Wrapped Ethereum (WETH).

This loss was reportedly due to a donation attack on its Compound v2 forks during the integration of VELO into the Optimism market. The attack led to a drop in the price of SONNE, Sonne Finance's associated digital asset, by over 60%. ALEX Lab, a Bitcoin DeFi application, also experienced a hack where a loss of more than $4 million in different tokens was recorded.

The security breach was reportedly due to attackers gaining access to ALEX Lab's XLink Bridge's private key. In response to these attacks, both protocols have reportedly offered bounties to the hackers, as recovery efforts are currently underway.