UXLINK launches compensation buyback after recovering portion of $11.3M stolen in September breach

UXLINK has announced the launch of its Uxlink token compensation plan, which will commence with an initial token buyback on October 18–19. The move comes after the project recovered a portion of stolen assets from centralized exchanges including Bybit and Bitget, following a major security breach in September.

In an official statement on October 14, the project confirmed that the buyback will be funded by recovered assets and directed entirely toward reimbursing users through the community-approved Uxlink token compensation plan. The plan, passed on October 4 with 99.99% community support, ensures fair restitution for both on-chain and centralized exchange users affected by the incident.

The hack, which exposed vulnerabilities in UXLINK’s multi-signature wallet, resulted in a loss of approximately $11.3 million in digital assets. Since then, the project has taken decisive steps toward recovery and transparency.

Community governance leads Uxlink token compensation plan

Under the Uxlink token compensation plan, all repurchased tokens will support the Swap & Compensation mechanism, designed to provide equal value compensation to all holders. The compensation snapshot was taken on September 22 at 14:55 UTC, ensuring that user balances at the time of the exploit are accounted for.

“The buyback marks the first concrete step in executing our governance-backed compensation framework,” — UXLINK team, in a statement on X.

The returned funds used for the initial buyback were retrieved in collaboration with blockchain security firms SlowMist and SEAL 911, who helped track stolen assets and monitor wallet movements across multiple chains. Additional buybacks will follow as more frozen funds are released from cooperating exchanges.

To sustain liquidity for compensation, UXLINK announced plans to unlock 8–12% of its community, team, and treasury tokens—assets that were initially subject to long-term vesting. The project clarified that investor allocations remain unaffected, emphasizing that the adjustment is solely for recovery purposes.

Strengthening platform security after the breach

Beyond the Uxlink token compensation plan, the project has rolled out extensive security upgrades to prevent future incidents. These include hardware wallet integrations, quarterly red-team security tests, and expanded bug bounty programs to incentivize community-led risk discovery.

UXLINK has also implemented tiered onboarding and zero-knowledge verification to enhance user protection while maintaining compliance. “Security is now our highest operational priority,” — UXLINK security team, in a project update.

The project’s new Ethereum mainnet contract, launched on September 25, removed mint and burn permissions and underwent comprehensive security audits, reinforcing user trust.

Rebuilding community trust through transparency

Since the hack, community participation in governance and discussions has increased more than fivefold, signaling renewed faith in the project’s leadership. The Uxlink token compensation plan has become a rallying point for affected users, blending transparency with a structured restitution framework.

By linking recovery efforts to governance decisions and consistent communication, UXLINK is positioning itself as a model for post-crisis response in decentralized ecosystems. The upcoming buyback represents not only a financial remedy but a test of UXLINK’s resilience and commitment to its user base.

As the Uxlink token compensation plan unfolds, stakeholders and security partners continue to monitor its progress, viewing it as a benchmark for responsible recovery within the broader DeFi sector.