DeFi Multi-Signature Vulnerability Revealed: $11 Million UXLINK Breach Highlights Ongoing Security Issues

On September 22, 2025, UXLINK, a blockchain social infrastructure platform, announced that its multi-signature wallet had been breached, resulting in a $11.3 million loss. The incident led to an uncontrolled creation of 1–2 billion unauthorized tokens and caused its native token to plummet by 77% UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance [ 6 ]. The attacker took advantage of a vulnerability in the delegateCall function, granting themselves admin privileges and siphoning assets such as $4.5 million in stablecoins, ETH, and

Technical investigation traced the breach to a flaw in the multi-signature wallet’s delegateCall setup, which let the attacker bypass security checks and alter token supply controls UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge [ 1 ]. Using this loophole, the hacker changed wallet permissions, minted tokens far beyond the project’s stated limits, and liquidated the gains on both centralized and decentralized platforms UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance [ 6 ]. Security firm PeckShield verified the incident and advised the community to avoid trading UXLINK tokens until further notice UXLINK Price Plunges Sharply After 1B Tokens Breached [ 2 ]. In response, UXLINK suspended trading on major exchanges, froze suspicious accounts, and began a token swap to restore the original tokenomics UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge [ 1 ].

The market reacted sharply, with 24-hour trading volume soaring by 1,388% as panic selling set in UXLINK Price Plunges Sharply After 1B Tokens Breached [ 2 ]. Over the past month, the token lost 66% of its value, raising doubts about its future, though UXLINK stressed that user wallets were not directly affected UXLINK Phishing Attack: $43M Exploit Leads to Token Plunge [ 1 ]. The team is working with PeckShield, law enforcement, and exchanges to recover stolen funds and strengthen security protocols UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance [ 6 ]. The planned token swap aims to invalidate the hacker’s tokens and stabilize the platform, though there are still risks in execution UXLINK Token Swap: Urgent Safeguards After Massive Security … [ 3 ].

This event has reignited concerns about the dependability of multi-signature wallets in DeFi, which are intended to reduce single points of failure but can be compromised if permissions are mismanaged UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance [ 6 ]. Experts note that such incidents undermine investor confidence, with UXLINK’s situation serving as a warning for projects with complex governance structures UXLINK Tokens Face Urgent Crisis: Hacker Mints 1 Billion in Unauthorized Issuance [ 6 ]. The broader crypto sector also felt the impact, with increased scrutiny on Arbitrum-based projects and a surge in demand for real-time security monitoring tools UXLINK Hack: Token Swap to Fix $11.3M Crypto Breach [ 4 ].

Rolland, UXLINK’s CEO, has prioritized recovery efforts, including a compensation plan for those affected, though specifics have yet to be released When Permissions Go Wrong: 2025 Mid-Year Postmortem on Access Control & Delegatecall Exploits in Smart Contracts [ 7 ]. Restoring trust will depend on open communication and the effectiveness of the token swap. The breach highlights the pressing need for thorough smart contract audits and ongoing security checks, as even well-reviewed protocols can fall victim to sophisticated attacks.