XLink Partners Fireblocks, Ancilia After $10M Hack

As an experienced analyst, I believe that XLink’s partnership with Fireblocks and Ancilia is a positive step towards enhancing security measures on the Bitcoin bridge following the unfortunate $10 million hack. The implementation of advanced multiparty computation (MPC) technology through two-of-three MPC wallets will bring significant improvements to user asset protection, compared to traditional multisig solutions or single private keys.


As a Bitcoin analyst, I’d put it this way: XLink, a well-known intermediary in the Bitcoin world, has joined forces with Fireblocks and Ancilia to bolster its security infrastructure. This alliance intends to integrate advanced multiparty computation (MPC) technology into XLink’s system, providing a more robust shield compared to conventional multisignature solutions or sole private keys.

Implementation of MPC Technology

Through their collaboration, XLink and Fireblocks will introduce two-out-of-three Multi-Party Computing (MPC) wallets for handling user funds. The cryptographic keys will be held by Bitcoin Oracle, Fireblocks, and Coincover’s validator networks, ensuring strong security and effective disaster recovery solutions.

As the CEO and co-founder of Alex, I, Chiente Hsu, prioritized this partnership in light of the recent security incident that affected user funds. Our initial plan was to implement enhanced security measures by late June; however, in response to this urgent situation, we’ve expedited the process to ensure maximum protection for our users’ assets as soon as possible.

Continuous Observation 

Ancilia, specialized in securing Web3 applications, will enhance XLink’s security setup through continuous monitoring and immediate identification of threats. This will involve prompt notifications and preemptive actions to thwart potential intrusions.

A recent hack occurred due to the unauthorized release of a private key granting administrative control over a smart contract containing user assets. This incident underscores the importance of implementing advanced security protocols.

Ongoing Security Efforts

As a crypto investor following XLink closely, I was alarmed by the news of a recent hack on their platform. However, the team swiftly responded with a security update on June 17th. In this update, they disclosed that an attacker had carried out more than 9,700 transactions within a week, significantly increasing the number of unique addresses from under 100 to over 4,700.

Starting from June 17th at 11AM, I’ve identified over 9700 transactions made by an attacker. In each transaction, the attacker creates new Stacks (STX) wallet addresses and distributes the on-chain STX balance among them. The number of traceable transactions linked to this activity has been increasing.— ᛤ ALEX 🟧 THE Finance Layer on Bitcoin ᛤᛤᛤ (@ALEXLabBTC) June 17, 2024

As a crypto investor, I’ve noticed an intriguing trend with Stacks (STX): smaller quantities have been moving to numerous newly created wallets, followed by transfers to centralized exchanges (CEXs).

“XLink’s recent collaboration is in line with their overarching goal to enhance security for assets on the Bitcoin bridge. By teaming up with Cobo, a leading digital asset custody provider, XLink aims to introduce Multi-Party Computation (MPC) technology and set new safety benchmarks within the blockchain sector.”

The company continues to prioritize enabling secure Bitcoin transactions on various blockchains using its interconnected liquidity system.

Read More

Sorry. No data so far.

2024-06-17 19:32