A security breach for UXLINK agranted an attacker minting authority, prompting the Korean exchange Upbit to flag the token as under warning status just as market data shows UXLINK has lost more than 66% of its value in 24 hours.
Key Takeaways
- A hacker exploited UXLINK’s multi-signature wallet to gain mint role, allowing unauthorized minting of new tokens and draining funds.
- As a result of the exploit, Upbit has designated UXLINK a trading warning token.
- More than US$11.3 million in various assets, including USDT, USDC, WBTC, ETH, and UXLINK tokens, were stolen; the attack triggered heavy sell-pressure and rapid market loss.
Earlier today, September 23, UXLINK’s security team confirmed that a vulnerability in its multi-signature wallet allowed hackers to gain minting authority, enabling them to generate unauthorized tokens and withdraw funds. The breach prompted Upbit, a leading South Korean crypto exchange, to flag UXLINK as a trading warning token. Deposits on the exchange have been suspended, while Upbit follows internal procedures to determine when trading can safely resume.
UXLINK receives a "trading warning" from DAXA, as announced by Upbit Korea on X (formerly Twitter). Source: Upbit Korea
Upbit, one of the exchanges listing UXLINK, responded by flagging the token as a warning token, which is a status used when significant security or disclosure concerns arise. Deposits have been suspended, and Upbit says they will follow their established procedures for evaluating when to restore services.
UpBit marked UXLINK token as a “trading caution item” based on the translated page of its website. Source: UpBit
Token Theft and Market Fallout
The exploit resulted in the theft of US$11.3 million in assets, which includes USDT, USDC, WBTC, ETH, and UXLINK tokens. The news have caused panic selling and contributed to a drastic price collapse. As of this writing (8:45AM UTC), UXLINK trades at US$0.0869, marking a 71% drop within 24 hours.
Trading volume surged to more than US$400–500 million, far exceeding the usual levels. Technical indicators, including the Relative Strength Index (RSI), show the token is heavily oversold, signaling intense bearish sentiment. Analysts warn that without a credible remediation plan, volatility will remain elevated.
Project Response and Future Outlook
On its official X account, UXLINK wrote its latest update noted as “Security Notice Update 3,” where it highlighted that they have detected that the exploit still continues, which means that the unauthorized minting of UXLINK tokens is still being done by the “malicious actor.”
The UXLINK team is reportedly planning a token swap to restore token integrity and prevent further unauthorized minting. Security audits and additional wallet protections are expected before trading can fully resume.
Market analysts predict UXLINK may test support levels near US$0.05–0.10 in the coming days. Any recovery will depend on verified progress in security remediation and clear communication from project developers. For now, risk remains high and price volatility is expected to continue.
What’s Next
The UXLINK incident highlights the risks of crypto investment in emerging tokens with limited security infrastructure. While Upbit’s proactive flagging helps protect traders, the road to recovery for UXLINK will rely heavily on restoring investor confidence through transparent actions, technical fixes, and secure token management.
Summary
UXLINK was hit by a major exploit granting hackers minting rights, leading to a $11.3M theft and a 71% price crash. Upbit flagged the token as a trading warning, suspending deposits. UXLINK plans a token swap and further security measures, but volatility remains high. Analysts warn that confidence will only return once security fixes are proven effective.
