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The AI-powered Web3 social platform UXLink experienced a significant security breach, resulting in the minting of billions of unauthorized tokens and a dramatic 90% crash in its UXLINK token value. In a bizarre twist, the perpetrator was reportedly phished during the exploit, losing a substantial portion of the illicitly minted tokens.
Key Takeaways
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UXLink's multisignature wallet was compromised, allowing an attacker to mint billions of UXLINK tokens.
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The UXLINK token price plummeted by over 90% following the exploit.
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The attacker was allegedly phished, losing over 500 billion tokens during the incident.
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UXLink is initiating a token swap plan and has submitted a new smart contract for a security audit.
The Breach and Token Inflation
UXLink announced the breach on Tuesday, confirming that a malicious actor had gained access to its multisignature wallet. This allowed the attacker to mint an enormous quantity of UXLINK tokens, estimated by Hacken to be nearly 10 trillion. The unauthorized minting led to a massive inflation of the token supply.
Financial Impact and Recovery Efforts
Following the exploit, the UXLINK token experienced a sharp decline, falling from $0.33 to $0.033 before a slight recovery to $0.11. The total estimated losses from the incident exceed $30 million. UXLink has been actively working with centralized and decentralized exchanges to freeze suspicious deposits and has reported the incident to law enforcement. A significant portion of the stolen assets has reportedly been frozen.
The Ironic Twist: Attacker Phished
In an unexpected turn of events, onchain analysis firm Lookonchain reported that the attacker was phished while carrying out the exploit. The attacker reportedly lost over 500 billion UXLINK tokens due to this phishing attack, adding an ironic layer to the security incident. Despite minting trillions, the attacker managed to swap only 9.95 trillion tokens for approximately 16 Ether (ETH), valued at around $67,000.
UXLink's Response and Future Plans
In response to the attack, UXLink requested centralized exchanges to temporarily suspend trading of its token. The company is preparing a token swap plan to safeguard its ecosystem and protect users. UXLink has also submitted a new smart contract for a security audit, which will feature a fixed supply to prevent future unauthorized token creation. The company urges users to remain vigilant and rely only on official communication channels for updates and instructions regarding the token swap.
Sources
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UXLINK Token Crashes 90% After Hacker Mints Billions of Tokens, Cointelegraph.
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The hacker who hacked UXLINK became a victim of the attack, Forklog
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