- A cyberattack on UXLINK resulted in over $11 million lost from multi-signature wallets.
- The Hackers later compromised UXLINK’s token contract, minting tokens worth hundreds of millions of dollars and further destabilizing the project.
- Total losses across the incident exceed $40 million, according to security researchers.
- The value of the UXLINK token crashed by more than 99.99% after the hack and mass liquidation.
- The attacker lost $42 million in tokens to a phishing scam before attempting to mint even more tokens.
On Monday, UXLINK, a Japanese web3 social platform and infrastructure project, suffered a major hack that drained more than $11 million in cryptocurrencies from its multi-signature wallets.
The breach was first identified by blockchain security firm Cyvers and confirmed by UXLINK shortly after. The attack resulted in the loss of Ether, Bitcoin, stablecoins USDC and USDT, as well as native UXLINK tokens.
In a subsequent update, the UXLINK team reported that their token contract had also been compromised. The attacker minted a large amount of new UXLINK tokens, significantly inflating the token supply. Within 12 hours of the initial breach, the Hacker generated one billion new UXLINK tokens and transferred them to their own addresses.
According to further analysis by blockchain security researchers, assets worth over $40 million—excluding the newly-minted UXLINK tokens—remained in addresses controlled by the hacker. The theoretical value of the minted tokens reached into the hundreds of millions; however, the token’s market price collapsed from approximately $0.32 to a fraction of a cent as the hacker dumped large sums and depleted available liquidity. CoinMarketCap data indicates that UXLINK’s price fell by 99.99%.
The attack took an unexpected turn when the hacker, rushing to sell the stolen UXLINK tokens, fell for a classic phishing scam after moving from Uniswap to CoW Swap, a decentralized trading protocol. The attacker inadvertently approved a malicious contract, resulting in the loss of 500 million UXLINK tokens—valued at about $42 million at the time—according to transaction records and reports from blockchain analysts on X.
Despite the major setback, the attacker proceeded to mint more UXLINK tokens and continued efforts to liquidate them. Neither the phishing scammer nor a so-called “drainer provider,” which had taken a typical 20% cut, succeeded in converting the compromised tokens into further gains.
For further details, see statements from UXLINK on X and blockchain incident trackers such as Cyvers.
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