UXLINK Hacked: Altcoin Price Drops More Than 70%

Web3 social platform project UXLINK made headlines earlier this week after experiencing a major security breach. The attack on the project's multisig wallet led to the unauthorized transfer of a significant amount of assets to both centralized exchanges (CEX) and decentralized exchanges (DEX). Following the incident, UXLINK's native token faced severe selling pressure, and its price lost over 70% of its value, falling to $0.10.

The attack was first reported by blockchain security firm Cyvers Alerts. Shared on-chain data revealed that an attacker used the delegateCall function to remove the existing admin role and add a new multisig owner under their control. With this critical move, the attacker began rapidly draining the wallet's assets. Initial findings indicate that at least 4 million USDT, 500,000 USDC, 3.7 WBTC, and 25 ETH were transferred to the attacker's addresses. On-chain analytics platform Lookonchain reported that the attacker also targeted UXLINK tokens. Approximately 6,732 ETH were obtained through transactions conducted through six different wallets. This figure corresponded to approximately $28 million at the current market capitalization. The attacker also continued to mint UXLINK tokens, along with millions of dollars in assets. According to on-chain data, nearly 10 trillion new tokens were produced by Monday evening.

UXLINK price plummets

These developments sparked widespread panic in the UXLINK market. According to market data, at the time of writing, the token's market capitalization had fallen by over 67% to $48 million. 24-hour trading volume surged to $473 million, a remarkable increase. The high volume was due to both attacker sales and panicked investor divestments.

The project team released a statement on the official X account following the incident. The statement confirmed that the attack had been detected and a significant amount of assets had been transferred to exchanges. However, according to the team, thanks to rapid contact with major exchanges, a significant portion of the attacker's assets were frozen. This prevented further damage.

The team also issued a crucial warning to the community: "Do not trade UXLINK on DEXs due to unauthorized tokens being minted." Furthermore, major centralized exchanges were asked to temporarily suspend UXLINK transactions. The project also announced that it would announce a token swap plan shortly.

UXLINK, founded in 2023 and aiming to develop a Web3-based social networking infrastructure, has seen remarkable growth in recent months. However, this attack is almost impossible to avoid for investors. Security incidents in the crypto market can often deeply undermine investor confidence.