Alex Lab, a Bitcoin decentralized finance (DeFi) protocol, revealed in a detailed post on Tuesday that the $4 million exploit it encountered last month was likely orchestrated by the Lazarus Group, a notorious cyber-hacking entity associated with North Korea.

Following an extensive investigation led by crypto investigator ZachXBT, Alex Lab identified substantial transaction evidence linking the exploit to the Lazarus Group. The project highlighted two critical addresses—one initially used in the exploit and another associated with the Lazarus Group—that were instrumental in tracing the flow of stolen assets. Alex Lab emphasized its active collaboration with international law enforcement and cybersecurity experts to address the implications of the attack and initiate efforts to recover lost assets.

The incident, announced by Alex Lab on X on May 16, involved an exploit that utilized compromised private keys acquired through a phishing attack. This allowed the exploiter to drain assets from the ALEX protocol, resulting in approximately $4.3 million in losses, according to Certik's assessment.

Since the exploit, Alex Lab has facilitated communication between the Singaporean police and relevant cryptocurrency exchanges to safeguard stolen assets during ongoing investigations. Many of the stolen assets, specifically traced STX tokens, have been frozen by these exchanges, with assurances from them to maintain the freeze pending police directives and further investigations.

In a separate update also shared on Tuesday, Alex Lab reassured affected users that the Foundation would promptly announce when frozen funds could be returned once investigations are completed and regulatory requirements are met. This proactive measure aims to provide transparency and restore confidence among users affected by the exploit.

Despite these efforts, the price of the Alex token experienced a 3.2% decline over the past 24 hours at the time of publication, as per CoinGecko data. This price movement reflects market sentiment in response to the exploit incident and ongoing developments surrounding the recovery process.

The revelation of North Korea's Lazarus Group involvement underscores the persistent cybersecurity challenges faced by the cryptocurrency industry, highlighting the importance of robust security measures and vigilance against sophisticated cyber threats. Alex Lab's response exemplifies the collaborative approach required across global jurisdictions to mitigate risks and safeguard investor interests in the evolving landscape of decentralized finance.