SocialFi's Trust Crisis Deepens as UXLINK Hacker Unleashes 1 Billion Tokens, Sparking $11M Loss

UXLINK, a Web3 social platform, has disclosed a critical security incident involving the unauthorized issuance of 1 billion tokens by a malicious actor. The project confirmed the breach in a public statement, warning users to avoid trading the token on decentralized exchanges (DEXs) to mitigate potential losses. The unauthorized transactions, visible on Arbiscan, violate the project’s whitepaper and have triggered immediate action from major exchanges, which have frozen most of the affected assets.

The hacker exploited vulnerabilities in UXLINK’s multi-signature wallet, executing a delegateCall to remove admin roles and gain control over token distribution. This allowed the attacker to mint additional UXLINK tokens, which were subsequently moved to multiple wallets. UXLINK’s team has initiated legal and compliance measures to stabilize the token supply and align it with the whitepaper’s parameters. A token swap plan is also underway to address the imbalance, with details expected to be finalized in the coming weeks.

The market reaction has been severe. Following the announcement, the UXLINK token price plummeted 58%, dropping from $0.3 to $0.13, while its market capitalization fell to $63.6 million. The decline reflects investor uncertainty and the broader crypto market’s sensitivity to security lapses. Analysts note that the unauthorized issuance could further erode trust, particularly as the platform competes in the volatile SocialFi sector.

UXLINK’s response includes collaboration with exchanges to freeze suspicious deposits and prevent further movement of the illicitly issued tokens. The team has also engaged legal authorities to trace the hacker’s activities and recover the stolen assets. Despite these efforts, the incident underscores systemic risks in decentralized finance (DeFi), where smart contract vulnerabilities can lead to rapid, large-scale losses.

The project’s governance structure faces renewed scrutiny, as the breach occurred amid ongoing community votes on token release schedules and strategic diversification. A recent proposal to advance 4.5% of tokens into a custody multisig wallet—intended to support exchange listings—now appears precarious in light of the security lapse. UXLINK’s DAO Committee, formed to oversee treasury allocation and governance, will likely play a central role in rebuilding user confidence.

Long-term implications for UXLINK depend on its ability to execute the token swap plan effectively and restore transparency. The platform’s roadmap includes expanding its Social Growth Layer and integrating AI-driven tools to enhance user engagement. However, the unauthorized issuance crisis could delay these initiatives, particularly if regulatory or reputational challenges persist.

[1] UXLINK discloses malicious unauthorized token issuance, … (https://www.odaily.news/en/newsflash/449440)

[2] AI-Powered Crypto Platform UXLink Loses $11.3M to Security … (https://cointab.com/ai-uxlink-loses-11-3m-to-security-breach/)

[3] UXLINK Governance Vote - cryptocalendar.ai (https://cryptocalendar.ai/events/uxlink-governance-vote-19-09-2025)