UXLINK is a decentralized finance (DeFi) platform that manages secure multi-chain tokens. Recently, it experienced a major security breach that affected its multi-signature wallet. The breach allowed a significant amount of cryptocurrency to be moved illegally to both centralized exchanges (CEXs) and decentralized exchanges (DEXs).
About 14 hours ago at 5:40 PM UTC, UXLINK issued an urgent notice confirming the breach. The team said they were working around the clock with internal and external experts to find the cause and contain the situation.
Major exchanges were contacted immediately to freeze suspicious deposits. Authorities and police were involved to speed up legal and recovery efforts. UXLINK emphasized that they were committed to keeping the community informed.
First update on recovery
About 10 hours after the first alert, UXLINK shared an update saying that most of the stolen tokens had already been frozen, thanks to quick action by major exchanges. They also brought in the security firm PeckShield to help investigate and recover the funds.
The team confirmed that regular user wallets weren’t affected and emphasized that their main priority is keeping the community’s assets safe and figuring out how to compensate anyone impacted.
Unauthorized token minting
A few hours ago at 1:36 AM UTC, UXLINK shared a new update revealing that someone had created UXLINK tokens without permission, which goes against the project’s official whitepaper. They warned the community to avoid trading $UXLINK on decentralized exchanges, as these unauthorized tokens could lead to losses.
UXLINK made it clear that the whitepaper remains the authoritative guide for token supply and said they would soon roll out a token swap to fix the situation and keep the token economy intact.
Latest discovery: Phishing exploit
The latest development came from Scam Sniffer, which reported that the hacker had used a malicious increaseAllowance approval to a phishing contract. As a result, about 542 million UXLINK, worth roughly $45.5 million, was sent to phishing addresses. The breakdown includes 108 million UXLINK (~$9.1M) to one address and 433 million UXLINK (~$36.4M) to another, as per data by Arbiscan.
Emergency measures
UXLINK is moving quickly to handle the situation. They’ve asked major exchanges to temporarily stop UXLINK trading and are getting a token swap ready. The team told the community that they’re focused on being open about everything, recovering the stolen funds, and making sure everyone’s assets are safe while rebuilding trust in the project.
UXLINK price crashes after update
After the recent announcement, UXLINK’s price has fallen almost completely, dropping 99.99% in a single day to $0.0000009065. Its market cap has now dropped to about $4.34K. At the same time, 24-hour trading volume has surged to $485.19M, showing heavy activity even as the price collapses.
Also Read: NGP Protocol Hit by $2M Exploit, Funds Sent to Tornado Cash
