UXLINK Token Plunges After $11M Multisig Wallet Hack
UXLINK Token Suffers Major Price Drop After Security Breach
UXLINK's native token experienced a sharp decline on Monday after the project disclosed a security breach affecting its multi-signature wallet. The incident resulted in the theft of a substantial amount of crypto assets, triggering a rapid response from the UXLINK team and security experts.
The token's value plummeted by over 77%, dropping from approximately $0.30 to $0.072, before showing signs of recovery, climbing back above $0.10, according to CoinMarketCap data.
Details of the UXLINK Hack
The security incident was initially detected by Cyvers Alerts, which reported unusual UXLINK transactions involving approximately $11.3 million.
UXLINK later confirmed that a malicious actor had illicitly minted tokens and transferred them to centralized and decentralized exchanges. The project is actively collaborating with both internal and external security experts, including PeckShield, to conduct a thorough investigation.
"A large portion of the stolen assets has already been frozen, and collaboration with exchanges remains strong," UXLINK stated in a recent update. They also noted that there were "no signs of individual user wallets being targeted by the attack."
Immediate Actions and Recommendations
- Emergency Measures: The UXLINK team is working to implement emergency measures, which include contacting major exchanges to temporarily suspend trading of the token.
- Token Swap: A token swap plan is being initiated to address the impact of the unauthorized minting.
- Law Enforcement: The security breach has been reported to the police and relevant authorities.
- Trading Suspension: "We strongly advise all community members not to trade UXLINK on DEXs at this time, in order to avoid potential losses caused by these unauthorized tokens," the project warned.
The importance of secure multi-signature wallets and smart contract audits cannot be overstated. Platforms like Codeum offer audit services to identify vulnerabilities before they are exploited.