Massive $11.3 Million UXLINK Hack Devastates Token Price by 70%
UXLINK hack: UXLINK, a blockchain social project, has suffered a major security breach resulting in $11.3 million in stolen assets and a dramatic 70% collapse in its token value.
Details of the UXLINK Hack
On September 22, UXLINK experienced a severe exploit when attackers exploited a weakness in its multi-signature wallet. By leveraging this vulnerability, the hackers gained unauthorized administrative control, allowing them to transfer significant sums from the project’s reserves.
According to leading blockchain security firms, the attacker manipulated the wallet’s permissions, replacing the legitimate admin with their own address. This gave them the freedom to siphon off various assets, including $4 million in USDT, $500,000 in USDC, 3.7 WBTC, and 25 ETH. The stolen USDT and USDC were quickly converted into DAI on Ethereum, while USDT on Arbitrum was exchanged for ETH and moved back to Ethereum.
The breach didn’t stop at asset theft. Shortly after, a related account received 10 million UXLINK tokens, valued at roughly $3 million, some of which were rapidly traded across exchanges.
Company Response and Ongoing Investigation
UXLINK officially confirmed the hack, explaining that the incident involved illicit transfers to both centralized and decentralized exchanges. The team has since joined forces with internal and third-party security experts to determine the exploit’s exact cause and mitigate ongoing risks. Major trading platforms have been notified to freeze suspicious deposits, and coordination with law enforcement is underway to support the recovery process.
UXLINK Hack Causes Over 70% Price Crash
Despite efforts to contain the situation, the exploit’s aftermath has been catastrophic for the UXLINK token. The attackers began minting new UXLINK tokens, with reports suggesting between 1 and 2 billion tokens were created on Arbitrum—effectively doubling the circulating supply. Approximately 490 million of these were dumped across both centralized and decentralized exchanges, sparking a severe price collapse.
Within hours, the UXLINK token’s price nosedived from $0.30 to about $0.09, erasing nearly $70 million in market capitalization. While some assets—estimated at $5–7 million—were frozen by major exchanges, the majority of the stolen funds, converted to over 6,700 ETH worth about $28 million, remain under the attacker’s control.
In an unexpected twist, the hackers also fell victim to a secondary scam, losing over 542 million stolen tokens to a phishing group. UXLINK has since announced plans for a token swap to restore market integrity and compensate affected holders, with further instructions to be released via official channels.
What’s Next After the UXLINK Hack?
UXLINK’s swift response and collaboration with exchanges and law enforcement aim to limit the damage and restore user confidence. The incident highlights ongoing security challenges in the blockchain sector, emphasizing the importance of robust wallet management and rapid crisis communication. For more context on recent blockchain security breaches, refer to this summary by CoinDesk.
The UXLINK hack serves as a critical reminder of the risks in decentralized finance and the importance of ongoing vigilance for both projects and investors.
