Top Highlights
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Massive Exploit: On September 22, UXLINK suffered a hack exploiting its multi-signature wallet, draining over $11.3 million in assets.
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Vulnerability Details: The attacker used an Ethereum address to strip admin rights, allowing them to transfer funds, including $4 million in USDT and 25 ETH, before converting and redistributing the stolen assets.
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Token Collapse: Following the breach, UXLINK’s supply nearly doubled, leading to a 70% price drop from $0.30 to $0.09, erasing around $70 million in market capitalization.
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Response and Recovery Efforts: UXLINK is working with security experts and law enforcement to recover funds and halt further transfers, while planning a token swap to compensate affected holders.
UXLINK Falls Victim to $11.3 Million Exploit, Token Plunges by Over 70%
On September 22, UXLINK experienced a significant breach, losing over $11.3 million in cryptocurrency. Hackers exploited a vulnerability in the project’s multi-signature wallet, granting them unauthorized admin rights.
According to blockchain security firm CyversAlerts, the attackers executed a “delegateCall” through an Ethereum address. This action stripped away the original admin role, allowing them to install a new owner with special permissions. Subsequently, they moved substantial assets, including $4 million in USDT, $500,000 in USDC, and 25 ETH. After the theft, they converted the stolen USDT and USDC into DAI and ETH.
UXLINK confirmed the breach on X, stating, “We have identified a security breach involving our multi-signature wallet.” The company is collaborating with both internal and external security experts to investigate the hack. Additionally, they have informed major exchanges to freeze suspicious UXLINK deposits and are cooperating with law enforcement for recovery efforts.
The impact on the token was immediate and severe. Despite swift actions from exchanges like Upbit—freezing $5–7 million in assets—the hacker began minting new UXLINK tokens. PeckShieldAlert reported that between one and two billion new tokens surfaced on the Arbitrum blockchain, effectively doubling the existing supply. The market reacted sharply, leading to a price drop of over 70%, from $0.30 to approximately $0.09. Consequently, this lost around $70 million in market capital.
Interestingly, the exploiters later encountered their own setback, losing over 542 million stolen tokens to the Inferno Drainer group. Meanwhile, UXLINK announced plans for a token swap aimed at restoring supply integrity and compensating affected holders. More details will be shared through their official channels.
Overall, the incident with UXLINK highlights ongoing challenges within the cryptocurrency landscape, emphasizing the need for stronger security measures. As projects continue to innovate, the focus on secure technology development will remain critical for gaining user trust and protecting assets.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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