UXLINK launches compensation plan for users after $11.3 million hack

UXLINK is pressing forward with its UXLINK hack compensation plan after millions of its tokens were compromised in a recent security breach. The project confirmed that a new smart contract for its token migration has been completed and is now ready for deployment.

Under the plan, all legally circulating UXLINK tokens will be exchanged on a 1:1 basis, while stolen or illegally minted tokens will be excluded. According to the protocol, most of the compromised assets have already been suspended, though some remain in circulation and are actively monitored.

An official on-chain portal for the migration is scheduled to go live within five working days. However, individual exchanges may follow their own timelines, depending on internal and regulatory reviews. Submissions of the migration proposal and incident report have also been sent to major trading platforms and the Digital Asset eXchange Association (DAXA).

Compensation strategy for affected users

Central to the UXLINK hack compensation plan is a two-phase framework aimed at protecting token holders and restoring losses over time.

The first phase will prioritize direct support for users whose tokens were affected during the incident. This ensures that legitimate holders are able to migrate their assets and regain access to stable value as quickly as possible.

The second phase will depend on the success of ongoing recovery efforts. Any funds retrieved from frozen or tracked hacker wallets will be used to reimburse additional losses.

“All hack compensation measures are being handled transparently, with a focus on protecting the community,” — UXLINK team, in its official update.

International cooperation in recovery

The UXLINK hack compensation plan also extends beyond token swaps, involving coordinated recovery actions across multiple jurisdictions. UXLINK confirmed that it is working with regulators in Singapore, Korea, and Japan to trace hacker-linked wallets. The project has also engaged leading blockchain security experts to strengthen monitoring and prevent further misuse of stolen funds.

While some of the attacker’s recent asset movements complicate the chances of a full recovery, the protocol emphasized that it remains committed to pursuing all available avenues.

“We are actively tracking the situation and will continue to report progress in collaboration with exchanges and regulators,” — UXLINK security update.

Broader industry implications

The UXLINK hack compensation plan highlights the growing complexity of post-exploit management in decentralized ecosystems. By finalizing a smart contract migration and engaging exchanges and regulators early, UXLINK aims to set a precedent for handling token security crises.

Still, challenges remain. The incident illustrates how quickly digital assets can be compromised and how long recovery can take, even with strong technical and regulatory cooperation.

For users, the UXLINK hack compensation plan offers reassurance that immediate support and longer-term restitution measures are in place. For the industry, it underscores the need for proactive security frameworks and transparent recovery processes to maintain trust in tokenized ecosystems.