UXLink, an AI-powered Web3 social infrastructure platform, recently faced a severe security incident that sent shockwaves through its ecosystem. A malicious actor exploited a vulnerability in its multi-signature wallet, leading to the unauthorized creation of billions of UXLINK tokens and a dramatic plunge in the token's market value.
Initial Breach and Massive Minting
The breach began with an exploit in UXLink's multi-signature wallet, allowing the attacker to illicitly mint an unprecedented volume of UXLINK tokens. Initially, billions were created, quickly escalating to an estimated 10 trillion tokens, as reported by blockchain security firms like PeckShield and Hacken. Although the attacker managed to exchange a significant portion for a relatively small amount of Ether, the incident triggered a devastating 90% drop in the UXLINK token's price, from $0.33 to $0.033. This resulted in estimated total losses exceeding $30 million for the project. UXLink promptly reported the breach to authorities and engaged with various centralized and decentralized exchanges to freeze suspicious transfers.
Mitigation Efforts and Future Security
In response to the crisis, UXLink swiftly initiated measures to contain the damage and safeguard its community. The platform collaborated with exchanges, successfully freezing a substantial portion of the stolen assets. It also publicly urged all exchanges to suspend trading of its token. Looking ahead, UXLink announced a comprehensive token swap plan designed to protect its ecosystem and mitigate the long-term impact of the exploit. Furthermore, the company has submitted a new smart contract for a security audit, which will feature a fixed token supply to prevent any future unauthorized minting. Users have been advised to remain vigilant and rely solely on official communication channels for updates. UXLink is currently preparing a full incident report in collaboration with its security partners.
