Key Takeaways
- UXLINK was hacked on Sept. 22 after attackers seized control of its multi-sig wallet.
- The exploit allowed the minting of up to 2 billion tokens and the theft of millions in assets.
- ETH and UXLINK prices plunged as panic selling spread.
A Tokyo-based Web3 platform boasting more than 55 million registered users across 100 countries has become the latest victim of a major crypto exploit.
On Sept. 22, UXLINK suffered a devastating hack that saw attackers mint billions of its native tokens and siphon off tens of millions in crypto assets, triggering one of the most severe collapses in its short history.
How the Hack Unfolded
According to blockchain security firms, the attackers exploited a vulnerability tied to “delegateCall” functions in UXLINK’s smart contracts on Ethereum (ETH) and Arbitrum.
This allowed them to seize control of the project’s multi-signature wallet, strip existing admins of their privileges, and assume full ownership rights.
Once in control, the hackers drained stablecoins, including USDT, USDC, and wrapped Bitcoin (WBTC), as well as ETH and existing UXLINK tokens.
They then minted between 1 and 2 billion additional UXLINK tokens—nearly doubling the circulating supply from roughly 995 million to close to 2 billion.
By moving quickly across six wallets, the attackers swapped the stolen assets into ETH and other tokens, netting 6,732 ETH (about $28.1 million) on centralized and decentralized exchanges.
Roughly $800,000 worth of UXLINK was dumped within hours, sparking immediate sell pressure.
Market Fallout
The attack unleashed chaos across the market.
UXLINK’s token price collapsed by 70–77% within hours, plunging from around $0.30 to under $0.10.
The market cap shrank by roughly $70 million, while trading volume spiked more than 1,700% as panic set in.
ETH also came under selling pressure as hackers offloaded part of their takings, adding strain to an already fragile crypto market reeling from recent liquidations.
Exchange Response and Recovery Efforts
UXLINK acknowledged the breach six hours after the exploit, confirming the minting of unauthorized tokens and loss of reserves.
The team announced it was coordinating with exchanges and law enforcement to freeze stolen funds and track the attackers.
Upbit and other major platforms quickly froze between $5 million and $7 million in suspicious deposits.
However, analysts estimate that as much as $20–30 million in stolen assets remain under the hacker’s control.
In a bid to stabilize the project, UXLINK pledged to compensate victims through a community-governed process.
Illegally minted tokens will be swapped 1:1 for legitimate UXLINK tokens, with the excess supply slated for destruction to restore market integrity.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
