- UXLINK token price crashes 70% after major security breach.
- Hacker exploits multi-signature wallet, transfers millions in cryptocurrency funds.
- UXLINK warns users of unauthorized token minting, urges caution.
UXLINK, a Web3 social platform, has confirmed a significant security breach, revealing that its multi-signature wallet was compromised. According to reports from the platform, illicit transactions have led to a potential loss of tens of millions of dollars, causing a sharp decline in the token’s value.
The breach saw substantial amounts of cryptocurrency transferred to both centralized and decentralized exchanges, triggering a severe impact on UXLINK’s market price.
Malicious Actor Exploits Multi-Signature Wallet Vulnerabilities
The breach, detected by the UXLINK team, was traced back to a malicious actor exploiting vulnerabilities within its multi-signature wallet. Early reports from Cyvers Alerts highlighted suspicious activities, including a delegate call that removed admin privileges and added a new multisig owner.
The hacker then executed a series of transfers, including at least $4 million in USDT, $500,000 in USDC, 3.7 WBTC, and 25 ETH.
Subsequent on-chain data from Lookonchain confirmed that the hacker had also offloaded UXLINK tokens on decentralized exchanges, accumulating over 6,700 ETH, valued at approximately $28.1 million. Despite the scale of the breach, major exchanges have moved quickly to freeze most of the stolen assets, mitigating further risks to the community.
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In addition to the illicit transfers, the attacker was found to be minting UXLINK tokens. The platform reported that around 10 trillion tokens were minted in the wake of the hack, further destabilizing the token’s price. This action resulted in a dramatic 70% drop in UXLINK’s value, now sitting at $0.08912, as per CoinGecko data.
UXLINK is urging users to refrain from trading the token on decentralized exchanges, warning of potential risks due to the unauthorized minting. The team is actively working with centralized exchanges to suspend UXLINK trading temporarily and is planning a token swap to address the aftermath of the attack.
Platform’s Response and Ongoing Efforts to Limit Damage
To manage the situation, UXLINK is in contact with major exchanges to halt further trading of the compromised token. The project aims to devise a strategy to swap the current tokens for a more secure version, providing affected users with some form of compensation.
While the stolen funds are mostly frozen, the platform has warned of continued risks until full resolution is achieved.
The breach serves as a stark reminder of the vulnerabilities present within the Web3 ecosystem. As decentralized platforms grow, securing multi-signature wallets and implementing robust protective measures remain top priorities for maintaining trust and protecting users’ assets.
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