Hackers Stealing $11M from UXLINK Lose $48M to Phishing Scam

UXLINK, a Web3 social infrastructure project, fell victim to a $11.3 million exploit on September 22, 2025, following a critical vulnerability in its multi-signature wallet. Attackers exploited a “delegateCall” flaw to remove existing administrators and install their own address as the new owner, granting full control over the walletUXLINK Hacked: Over $11 Million Stolen, Token Price Crash by 70%^[1]. This allowed them to drain $4.5 million in stablecoins, along with ETH and WBTC, while stealing 490 million native UXLINK tokensUXLink Faces $30M Loss After Multi-Signature Wallet Hack and …^[2]. The hackers also minted an additional 2 billion UXLINK tokens, which were rapidly sold across decentralized exchanges (DEXes) for 6,732 ETH—valued at approximately $28.1 millionUXLINK Token Exploit Sparks 70% Crash After Security Hack^[3]. The sudden influx of tokens triggered a panic sell-off, causing the UXLINK price to plummet from $0.30 to $0.09 within hours, erasing nearly $70 million in market capitalizationUXLINK Hack 2025: $11.3M Stolen, $UXLINK Tanked 70% in Multi …^[4].

The exploit exposed systemic weaknesses in UXLINK’s smart contract architecture, particularly in its multi-signature governance mechanism. On-chain analysis revealed that the attacker executed a delegateCall to remove admin roles and call “addOwnerWithThreshold,” effectively seizing controlUXLINK Hacked: Over $11 Million Stolen, Token Price Crash by 70%^[1]. The unauthorized minting of tokens further exacerbated market instability, as liquidity providers struggled to absorb the massive supply shock. Exchanges like Upbit, OKX, and Bybit responded by freezing suspicious deposits, though estimates suggest $5–7 million of the stolen assets were immobilized, leaving $20–30 million unaccounted forUXLink Faces $30M Loss After Multi-Signature Wallet Hack and …^[2]. UXLINK’s market capitalization dropped 73.08% to $39.18 million, with trading volume surging 1,012.77% to $473.13 millionUXLINK Token Exploit Sparks 70% Crash After Security Hack^[3].

In response, UXLINK issued an emergency token swap initiative to restore supply integrity. The project announced a 1:1 swap of unauthorized tokens for valid ones, with the remaining supply to be burnedUXLink Faces $30M Loss After Multi-Signature Wallet Hack and …^[2]. This measure aims to address the imbalance caused by the unauthorized minting of 10 trillion UXLINK tokens since the exploitUXLINK Hack 2025: $11.3M Stolen, $UXLINK Tanked 70% in Multi …^[4]. The team also engaged blockchain forensics firms, including PeckShield, to trace the stolen assets and collaborate with law enforcementUXLINK Hacked: Over $11 Million Stolen, Token Price Crash by 70%^[1]. Despite these efforts, user sentiment remains fractured. Critics accuse the platform of prioritizing institutional recovery over individual holders, with some labeling the token swap as a “rug pull”UXLINK Hack 2025: $11.3M Stolen, $UXLINK Tanked 70% in Multi …^[4]. Community members have demanded faster solutions, while others remain cautiously optimistic about the team’s ability to rebuild trust.

The irony of the situation deepened when the hackers themselves became victims of a phishing scam. On-chain data revealed that the attacker lost 542 million UXLINK tokens—worth $48 million—to the Inferno Drainer group after approving a malicious “increaseAllowance” transactionUXLINK Token Exploit Sparks 70% Crash After Security Hack^[3]. This twist highlighted the inherent risks of the DeFi ecosystem, where even perpetrators are vulnerable to exploitation. PeckShield’s analysis noted the phishing contract’s design, which mimicked legitimate platforms to trick users into granting token transfer permissionsUXLINK Token Exploit Sparks 70% Crash After Security Hack^[3]. The incident underscores the need for robust security protocols across all participants in the crypto space.

UXLINK’s crisis has broader implications for blockchain security, particularly in projects relying on multi-signature wallets. The exploit demonstrates how critical vulnerabilities in governance structures can be weaponized to destabilize markets. Analysts emphasize the importance of regular audits and real-time monitoring to mitigate such risks. As UXLINK navigates its recovery, the incident serves as a cautionary tale for the industry, reinforcing the need for transparency and proactive risk management in decentralized infrastructureUXLINK Hacked: Over $11 Million Stolen, Token Price Crash by 70%^[1].