Hackers drain $11M from UXLINK multisig in security breach

TL;DR Breakdown

UXLINK hacked: Attackers moved ~$11.3M from its multi-sig wallet.
USDT, USDC, WBTC, ETH swapped and bridged across Ethereum and Arbitrum.
Ethereum fell 7% to $4,196 amid broader market sell-off and rising uncertainty.

UXLINK confirmed a serious breach in its multi-signature wallet as attackers moved around $11.3 million in crypto to both centralized and decentralized exchanges. However, the platform assured its team is working with security experts and has asked several exchanges to freeze suspicious deposits.

This comes in when the digital assets market is already dealing with a heavy sell-off despite the Federal Reserve cutting interest rates. The cumulative crypto market dropped by more than 3% to hover around $3.89 trillion.

$70M UXLINK Market Cap Wiped in 1 Hour

Reports from Cyvers Alerts show that one address removed the admin role via delegateCall, added a new multisig owner. Later, it transferred around $4 million in USDT, $500K in USDC, 3.7 WBTC, and 25 ETH. Minutes later, another address received 10 million UXLINK tokens, worth about $3 million, and began selling. Roughly $2.2 million remains unsold.

On Ethereum, the USDT and USDC were swapped into DAI. On Arbitrum, USDT was converted into ETH and bridged to Ethereum. The attack triggered a massive surge in UXLINK trading with a 1,700% in volume. It caused the token’s market cap to drop more than $70 million in just an hour.

Ethereum is already dealing with high selling pressure. ETH price dropped by around 7% over the last 24 hours. ETH is trading with an average price of $4,196 at the press time. Its 24-hour trading volume has spiked by 217% to hit $58.53 mark. This suggests that many traders are moving their funds as uncertainty grows.

UXLINK was launched in 2023 with plans to create an AI-powered social layer for Web3. Meanwhile, it is now facing a serious PR and technical challenge. Experts warn that panic selling could further erode investor confidence if the team doesn’t move quickly to contain the fallout.

Amid all this action, Crypto.com CEO Kris Marszalek responded to claims of an undisclosed breach tied to the Scattered Spider hacker group. Bloomberg reported that teenage hackers gained access to an employee account in early 2023. Hackers exposed some personal data but did not touch customer funds.

ZachXBT called out the company for covering up the breach. However, Marszalek pushed back and stated the event was reported in a 2023 NMLS filing and to regulators. He called the accusations “misinformation from uninformed sources.”

Both events highlight the risks crypto platforms face from phishing and internal exploits, as well as the rapid market reactions that can follow. Quick security responses and transparency will be key for maintaining trust.