Key Notes
- UXLINK’s multi-signature wallet hacked, millions in tokens stolen.
- The original hacker lost $48 million to a separate phishing attack.
- UXLINK price plunges over 75%, now trading near $0.08.
AI-powered Web3 platform UXLINK recently suffered a major security breach on September 22. Initially, a malicious actor compromised UXLINK’s multi-signature wallet and began unauthorized minting of UXLINK tokens, a move that violates the project’s whitepaper.
According to LookOnChain, the hacker minted 2 billion UXLINK and obtained about 490 million tokens. They transferred large sums to decentralized exchanges to secure roughly 6,732 ETH (about $28.1 million).
The platform quickly engaged law enforcement, blockchain security firms, and major exchanges to freeze suspicious deposits and track the stolen funds. A large portion of those assets has already been frozen as investigations continue.
Phishing Attack Drains the Attacker
Ironically, the very hacker who drained UXLINK’s wallet became a phishing scam victim themselves. On-chain data revealed that about 542 million UXLINK tokens, worth around $48 million, were siphoned from the exploiter’s wallet.
Scam Sniffer reported that the hacker signed a malicious “increaseAllowance” contract tied to a phishing scam. This allowed another group of attackers, believed to be linked to the Inferno Drainer network, to drain the stolen funds.
The incident left the crypto community stunned, with many posting laughing emojis. Members are now reminding investors to stay vigilant, warning that in crypto “there’s always a bigger fish.”
UXLINK Price Tanks Amid Chaos
The double-layered hack triggered a sharp correction in the platform’s native token price. UXLINK was trading above $0.30 early on September 22. However, soon after the breach, the cryptocurrency plunged over 75% to around $0.08 at the time of writing.
The penny crypto has lost over $100 million in market cap in the past 24 hours.
In response, the UXLINK team has urged community members to avoid trading UXLINK on DEXs, warning of risks tied to unauthorized tokens.
The project also announced plans for a token swap to preserve the integrity of its ecosystem, promising further details soon.
This is not the only DeFi security incident this month. Just last week, New Gold Protocol, a decentralized staking project, suffered an exploit that drained about $2 million.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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Source: https://www.coinspeaker.com/uxlink-hacker-loses-48m-phishing/
