UXLINK Hacked For $11M, Token Price Crashes 70%

UXLINK Hacked for Over $11M, Token Drops Nearly 70%

The SocialFi project UXLINK has become the center of attention after being hit by a major cyberattack, resulting in losses of more than $11 million. The exploit is believed to have originated from a vulnerability in the project’s multisignature (multisig) wallet system — a security layer usually considered safe but, in this case, exploited to transfer assets illegally to CEXs and DEXs. The incident triggered a sharp market reaction, with $UXLINK plunging from $0.30 to $0.10, marking a loss of nearly 70% in just hours.

Details of the UXLINK Hack

According to initial reports, the attacker exploited a flaw in the multisig approval mechanism to withdraw a large amount of assets. These funds were then quickly moved across CEXs and DEXs, making tracing extremely difficult. The high transaction speed, decentralized infrastructure, and the ability to swap assets cross-chain significantly reduced the chances of recovery right after the attack.

Market Impact

Following the exploit, $UXLINK experienced a dramatic crash from $0.30 to $0.10. This steep drop caused widespread panic among retail investors, many of whom reported losing most of their holdings overnight. The event also raised concerns about risk management practices and the effectiveness of internal controls at UXLINK, especially since the project had previously gained traction as a fast-growing SocialFi ecosystem.

Project Team’s Response

The UXLINK team stated that it is working with blockchain security experts to investigate the root cause and full extent of the breach. At the same time, they have contacted major exchanges in an effort to freeze suspicious wallet addresses and block potential withdrawals or laundering attempts. However, given the decentralized and fast-moving nature of Web3, the likelihood of recovering stolen funds remains very low, as attackers can easily use cross-chain bridges, mixers, and instant swaps to cover their tracks.

Growing Security Risks in SocialFi and DeFi

The UXLINK hack comes amid a rising wave of cyberattacks targeting both SocialFi and DeFi protocols. Losses across the sector have already reached billions of dollars annually, underscoring the severe security challenges facing Web3. Even projects with audited smart contracts or multisig wallets are not immune to risks such as misconfigurations, operational flaws, and supply chain attacks. This reality highlights the urgent need for continuous upgrades in security standards, greater transparency in governance rights, and the use of timelocks and on-chain monitoring tools.

Lessons for Investors

For investors, the incident is a strong reminder of the importance of diversification to reduce exposure to single points of failure. Before engaging with any protocol, it is crucial to evaluate factors such as multisig structure, admin privileges, timelock mechanisms, incident response procedures, and the project’s security track record. In the short term, waiting for an official technical report, a possible compensation plan, and updates from exchanges on frozen funds can help mitigate unnecessary risks.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.