Web3 platform UXLINK loses $30M as hackers mint trillions of tokens

The UXLINK token hack has shaken investor confidence after attackers breached the project’s multisignature wallet, stealing more than $30 million in assets and minting nearly 10 trillion tokens. The incident, which unfolded on Tuesday, caused the token to collapse by more than 90% within hours.

AI-powered Web3 social platform UXLink confirmed the breach and said illicit transfers had been detected across both centralized and decentralized exchanges. The company said it had contacted exchanges to freeze suspicious deposits and notified law enforcement of the UXLINK token hack.

“A large portion of the stolen assets has already been frozen, and collaboration with exchanges remains strong,” — UXLink, in an official statement.

From multisig breach to mass token minting

According to blockchain security firm PeckShield, the UXLINK token hack began when the attacker minted 1 billion UXLINK tokens. Shortly after, another billion tokens were minted, followed by a series of unauthorized issuances.

Onchain analysts at Hacken later estimated that nearly 10 trillion tokens had been created in total. Despite this staggering number, the attacker managed to swap just under 10 trillion tokens for 16 Ether, valued at roughly $67,000. Hacken estimated the overall financial damage from the UXLINK token hack at more than $30 million.

In response, UXLink urged centralized exchanges to temporarily suspend trading of its token and announced plans for a token swap program aimed at restoring trust in its ecosystem.

Price collapse and ironic twist

The financial impact of the UXLINK token hack was immediate. The project’s token plummeted by 90%, falling from $0.33 to $0.033 before recovering slightly to $0.11 at the time of reporting. Market analysts noted that the sharp decline reflected shaken investor confidence and broader concerns about the resilience of Web3 projects.

Adding an unexpected twist, onchain analysis company Lookonchain revealed that while the attacker was executing the exploit, they themselves fell victim to a phishing scam, losing over 500 billion UXLINK tokens. This ironic turn highlighted the layered risks inherent in digital asset markets, both for investors and malicious actors.

UXLink’s response and next steps

UXLink confirmed that no individual wallets were compromised in the UXLINK token hack. However, the company urged its community to remain cautious and to follow only official communication channels for updates.

“Further details and instructions for the token swap will be announced shortly,” — UXLink, in its latest update.

The project also revealed it had submitted a new smart contract for a security audit. The updated contract will feature a fixed supply to prevent further unauthorized minting. UXLink said it is preparing a detailed incident report in collaboration with its security partners to ensure transparency and to strengthen safeguards against future breaches.

For crypto investors, the UXLINK token hack stands as a stark reminder of the sector’s volatility and ongoing security challenges. While exchanges and auditors work to contain the damage, the long-term recovery of UXLink — and confidence in its ecosystem — remains uncertain.