UXLINK Forced Into Emergency Token Swap as Hacker Rampage Continues - Unauthorized Minting Spree Exposes Critical Flaws

UXLINK scrambles to contain a security breach that's spiraling into a full-blown crisis. An unidentified hacker keeps minting tokens unauthorized—forcing the project into an emergency token swap just to stay afloat.

The Digital Siege

Attackers found a backdoor in UXLINK's smart contract architecture. They've been exploiting it for days—printing tokens like a central bank gone rogue. The protocol's treasury now faces existential pressure as artificially inflated supply threatens to crater real value.

Damage Control Mode

UXLINK's development team races against the clock. Their token swap proposal aims to quarantine compromised assets—but it's a desperate move that screams reactive, not proactive. Existing holders get migrated to a new contract while the old one bleeds out.

Market Fallout

Trading patterns show classic panic behavior. Whales dump positions as retail investors scramble for exits. The incident exposes how even supposedly decentralized systems remain vulnerable to single points of failure—another reminder that in crypto, your assets are only as secure as the weakest line of code.

Just another day in decentralized finance—where 'trustless' systems require endless trust exercises from users. The hacker essentially conducted the world's most aggressive token sale without permission—proving once again that in crypto, someone's always printing money; the question is whether they're supposed to.

UXLINK breach and unauthorized minting

The attack was first disclosed on Sept. 22 after blockchain security firm Cyvers flagged suspicious activity on UXLINK’s smart contracts. The project’s multi-sig wallet was compromised by hackers who exploited a “delegateCall” vulnerability to gain administrator privileges. 

This made it possible for assets worth approximately $11.3 million to be stolen, including $4.5 million in stablecoins and major tokens such as ETH and WBTC.

The attacker also minted between 1–2 billion UXLINK tokens on Arbitrum (ARB), of which 490 million were initially received and later sold across decentralized exchanges. Proceeds were bridged to Ethereum (ETH) and swapped into ETH, netting around 6,732 ETH ($28.1 million at current prices).

Despite quick intervention from exchanges, including Upbit, which froze deposits, the minting exploit has left the token supply compromised. UXLINK’s price dropped over 70% in the aftermath, falling from $0.30 to NEAR $0.09, erasing around $70 million in market cap.

UXLINK’s response and mitigation efforts

The project emphasized that user wallets were not directly affected. Most of the hacker’s funds have been frozen on exchanges, and law enforcement agencies are involved in recovery efforts. PeckShield has been engaged to assist with the investigation and auditing.

With the ongoing unauthorized minting, UXLINK said a token swap will be rolled out “promptly” to protect holders and realign the supply with its whitepaper rules. Further instructions will be issued through official channels.

The team reiterated its focus on protecting its 55 million users and ensuring transparency during the recovery process.