DeFi's Multi-Sig Flaw Exposed: $11M UXLINK Hack Underlines Security Crisis

UXLINK, a blockchain-based social infrastructure project, disclosed on September 22, 2025, that its multi-signature wallet was compromised in a $11.3 million security breach, triggering an uncontrolled minting of 1–2 billion unauthorized tokens and a 77% plunge in its native token’s price UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance^[6]. The exploit exploited a vulnerability in the platform’s delegateCall function, enabling the hacker to gain administrator-level access and drain assets including $4.5 million in stablecoins, ETH, and WBTC UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge^[1]. On-chain analysis revealed that the attacker transferred 542 million tokens to phishing addresses, dumped 490 million on exchanges, and generated an additional 2 billion tokens through illicit minting UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge^[1]. This unauthorized activity caused the UXLINK token to collapse to $0.09454 from $0.30 within hours, erasing $70 million in market capitalization UXLINK Token Swap: Urgent Safeguards After Massive Security …^[3].

The breach’s technical root cause was traced to a flaw in the multi-signature wallet’s delegateCall implementation, which allowed the attacker to bypass access controls and manipulate token supply mechanisms UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge^[1]. The hacker leveraged this vulnerability to reconfigure wallet permissions, mint tokens in excess of the project’s whitepaper limits, and liquidate proceeds across centralized and decentralized exchanges UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance^[6]. Security firm PeckShield confirmed the breach, urging the community to avoid trading UXLINK tokens until the situation is resolved UXLINK Price Plunges Sharply After 1B Tokens Breached^[2]. The project’s response included halting trading on major exchanges, freezing suspicious wallets, and initiating a token swap to realign supply with its original economic model UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge^[1].

Market reactions were severe, with 24-hour trading volume surging 1,388% amid panic selling UXLINK Price Plunges Sharply After 1B Tokens Breached^[2]. The token’s 66% decline over 30 days raised concerns about long-term viability, though UXLINK emphasized that user wallets were not directly compromised UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge^[1]. The company is collaborating with PeckShield, law enforcement, and exchanges to recover assets and implement stricter security measures UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance^[6]. A token swap is expected to invalidate the hacker’s minted tokens and stabilize the ecosystem, though execution risks remain UXLINK Token Swap: Urgent Safeguards After Massive Security …^[3].

The incident has reignited debates about the reliability of multi-signature wallets in DeFi, which are designed to mitigate single points of failure but proved vulnerable when access rights were misconfigured UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance^[6]. Analysts highlight that such breaches erode investor trust, with UXLINK’s case serving as a cautionary tale for projects relying on complex governance models UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance^[6]. The broader crypto market saw ripple effects, including increased scrutiny of Arbitrum-based projects and heightened demand for real-time monitoring tools UXLINK Hack: Token Swap to Fix $11.3M Crypto Breach^[4].

UXLINK’s CEO, Rolland, has directed efforts toward recovery, including a compensation plan for affected holders, though details remain pending When Permissions Go Wrong: 2025 Mid-Year Postmortem on Access Control & Delegatecall Exploits in Smart Contracts^[7]. The project’s ability to regain user confidence will depend on transparent communication and the success of its token swap. Meanwhile, the breach underscores the urgent need for rigorous smart contract audits and continuous security monitoring, as even well-audited protocols remain exposed to sophisticated exploits .