Web3 Social App Hack Wipes Off $70 Million From an Altcoin

UXLINK’s token value is cratering after Cyvers reported a suspected $11.3 million hack. Hackers apparently stole UXLINK tokens worth $3 million alongside a host of other assets.

The platform confirmed that the breach occurred on their multi-signature wallet and hackers are transferring the funds to multiple CEX and DEXs.

Major UXLINK Hack

UXLINK is an ambitious project, aiming to create a new AI-powered social infrastructure for Web3 ecosystems. Since its launch in 2023, it gained a lot of notoriety, but a recent hack may cause real problems.

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Cyvers reported a major suspected hack at UXLINK involving $11.3 million in suspicious transactions. Essentially, one address used delegateCall to remove the admin role, adding a new multisig owner with addOwnerWithThreshold.

This enabled nefarious actors to start draining assets.

Apparently, this hack led to a total of $11.3 million in assets drained from UXLINK. $4 million was in USDT tokens, and other stolen assets include USDC, WBTC, and ETH.

One wallet also received UXLINK tokens worth around $3 million, and immediately began selling around $800,000 worth.

A Crisis in Confidence?

After the hack, this rapid sell-off led to a 1700%+ increase in transaction volume for the UXLINK token. Between the actual criminals and ambient panic selling in the market, this token’s value rapidly collapsed.

The token lost more than $70 million in market cap over the past hour.

It’s unclear what percentage of the firm’s total assets were involved in this security breach, but that’s not the biggest concern. With intense sell pressure and liquidations, the firm will need to get ahead of this PR crisis to prevent a greater lack of confidence.

In situations like this, consumer trust can be much harder to replace than any lost tokens.