UXLINK $11.3M Hack
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In a shocking turn of events, UXLINK fell victim to a devastating hack on September 22, resulting in the loss of over $11.3 million in assets. According to some sources, including OrxCash.com, the news about UXLINK $11.3M Hack sent shockwaves through the cryptocurrency community.
Exploit Details and Aftermath
The incident involved hackers exploiting a vulnerability in the project’s multi-signature wallet, granting them admin rights. A blockchain security firm, CyversAlerts, detected $11.3 million in suspicious transactions related to the web3 social project. The hacker utilized an Ethereum (ETH) address to execute a “delegateCall,” stripping away the admin role and installing a new owner with special permissions.
The attackers then proceeded to move funds, including $4 million in USDT, $500,000 in USDC, 3.7 WBTC, and 25 ETH. The stolen USDT and USDC were converted to DAI on Ethereum, while USDT on Arbitrum was swapped to ETH and bridged back to the former.
UXLINK’s Response and Market Impact
UXLINK confirmed the incident, stating that they had identified a security breach involving their multi-signature wallet, resulting in a significant amount of cryptocurrency being illicitly transferred to both centralized and decentralized exchanges. The company is working with internal and external security experts to identify the cause of the hack and contain the damage.
The exploit has severely impacted the token’s supply, with the hacker starting to mint UXLINK tokens. Between 1 and 2 billion tokens were created on Arbitrum, nearly doubling the token’s circulating supply. Roughly 490 million of these tokens were dumped across decentralized and centralized exchanges, causing a sharp sell-off. UXLINK’s price dropped by more than **70%**, sliding from $0.30 to roughly $0.09, and wiping out around $70 million in market capitalization.
Future Implications and Investor Impact
The UXLINK hack serves as a stark reminder of the ever-present threats to cryptocurrency projects and the importance of robust security measures. From a retail investor perspective, this incident highlights the need for diligence and caution when investing in cryptocurrency projects, particularly those with complex smart contract systems. As the cryptocurrency market continues to evolve, it is likely that we will see increased scrutiny on project security and a growing demand for more transparent and robust protection measures.
UXLINK has announced plans for a token swap to restore supply integrity and compensate affected holders. The success of this effort will be closely watched by the cryptocurrency community, as it may set a precedent for how projects respond to and recover from major security breaches.
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