Blockchain security platform Cyvers Alerts flagged a suspicious transaction involving UXLINK’s multi-signature wallet on September 22.
The alert reported that more than $11.3 million worth of assets had been moved under unusual conditions.
According to the analysis, an Ethereum address executed a delegateCall, stripped the admin role, and initiated a new command: `addOwnerWithThreshold`. This was followed by transfers of:
- $4M in Tether (USDT)
- $500K in USD Coin (USDC)
- 3.7 Wrapped Bitcoin (WBTC), worth about $230K
- 25 Ether (ETH), valued at around $75K
Funds Moved Across Chains
On Ethereum, the attacker swapped all USDC and USDT into DAI. On Arbitrum, the stolen USDT was swapped into ETH and then bridged back to Ethereum. This tactic is consistent with previous on-chain laundering strategies that use decentralized exchanges to obscure transaction trails.
Minutes later, another wallet received 10 million UXLINK tokens (~$3M). This address began selling but still retains ~$2.2M worth unswapped at press time, signaling the exploit remains partially active.
As of writing, UXLINK (UXLINK) trades at $0.30, with a market cap of $92 million, according to CoinMarketCap.
UXLINK Issues Official Response
Shortly after the exploit, UXLINK confirmed the breach through an official statement.
The team acknowledged that its multi-signature wallet had been compromised, leading to “a significant amount of cryptocurrency being illicitly transferred to both centralized and decentralized exchanges.”
The platform said its security and engineering teams are “working around the clock with both internal and external experts” to identify the root cause and limit the attacker’s movements.
Coordinating With Exchanges and Authorities
UXLINK reported that it has reached out to major CEXs and DEXs to freeze suspicious deposits linked to the stolen funds. The company is coordinating with law enforcement agencies and regulators to accelerate legal recovery efforts.
Market Impact and Community Reaction
The UXLINK community has voiced concerns on X, with several users calling for immediate compensation plans. Others warned that the breach could impact trust in the project’s security framework, especially as multi-signature wallets are widely used to protect protocol treasuries.
While UXLINK tokens faced selling pressure, broader market activity has not shown signs of panic. The project continues to update its users in real time, urging caution against rumors until investigations conclude.
Security Risks Remain High
This incident underscores ongoing vulnerabilities in Web3 infrastructure. DelegateCall exploits and privilege escalations have been common attack vectors against multi-sig wallets, often allowing attackers to bypass traditional protections.
Analysts say the scale of the UXLINK exploit highlights the need for stronger real-time monitoring and rapid freeze protocols between projects and exchanges.
What’s Next for UXLINK
The immediate priority remains fund recovery and ensuring that further assets cannot be drained. With $11.3M already at risk and $2.2M UXLINK still unswapped, efforts now depend on exchange cooperation and law enforcement actions.
For the community, transparency will be key. UXLINK has promised regular updates, but the incident may reshape how investors view the security of project-managed multi-sig wallets.
Coinmarketcap data shows the UXLINK token experienced a sharp decline of 50% in few minutes, declining from a high of $0.3 to a current trading price of $0.16.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/uxlink-confirms-multi-signature-wallet-breach-after-11-3m-in-suspicious-transfers-uxlink-declines-50/
