Web3 social platform UXLink confirmed a security breach that exposed its multisignature wallet, enabling a malicious actor to mint approximately 10 trillion UXLINK tokens. PeckShield and Hacken onchain analysis indicated initial mints of 1 billion tokens, followed by successive unauthorized minting events totaling nearly 10 trillion tokens, resulting in estimated losses exceeding $30 million.
In response, UXLink swiftly contacted centralized exchanges (CEXs) to freeze suspicious deposits and worked with law enforcement and industry partners to contain the incident. Some funds were successfully frozen, and trading of UXLINK was temporarily suspended to mitigate further unauthorized activity.
Amid efforts to safeguard the ecosystem, it emerged that the attacker fell victim to a phishing scam while orchestrating the exploit. Lookonchain reported that the hacker lost over 500 billion UXLINK tokens to a malicious wallet exploit, highlighting the irony of security failures on both sides of the exploit.
The market reacted sharply, with UXLINK’s price plunging over 90% from $0.33 to $0.033, before partially recovering to $0.11 at the time of reporting. UXLink announced plans for a token swap to reset the supply under a new smart contract, pending external security audit and community consensus.
UXLink urged users to follow official channels and stay alert for authentic updates. The company is preparing a detailed incident report and implementing enhanced safeguards, including fixed token supply contracts and strengthened multi-party approval processes to prevent recurrence of such high-impact events.
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