UXLINK Hack Update: Hacker Moves Stolen Funds, Sells $6.8M in ETH
The attacker responsible for the UXLINK hack continues to shuffle their prey, recently converting assets to launder the proceeds of the hack. According to on-chain trackers, the malicious actor exchanged stablecoins worth approximately $6.8 million for 1,620 ETH in a transaction that occurred in the early morning hours.
This transaction marks the first significant effort by the attacker to cash out the stolen assets, which were obtained through an exploitation of the project’s multi-signature wallet. The hacker had already engaged in extensive fund mixing, moving assets across multiple wallets and utilizing both centralized and decentralized exchanges to complicate and launder the funds.
Losses and Conversions
In a surprising turn of events, the attacker has already lost a substantial portion of the stolen funds to a phishing attack. Security researchers discovered that the hacker had unknowingly granted approval for a malicious contract, which was drained by the Inferno Drainer group, resulting in the loss of 542 million UXLINK tokens, valued at around $43 million at the time.
The recently converted ETH represents only a part of the stolen funds, with the attacker still holding an estimated millions of dollars’ worth of various assets. The UXLINK protocol has taken emergency measures, including a token migration to a newly audited smart contract with a limited supply, to prevent similar exploits.
Background on the UXLINK Hack
The UXLINK hack occurred on September 22nd and lasted for several hours, during which the attacker exploited the project’s multi-signature wallet using a delegate-call vulnerability. This security flaw granted the attacker administrator-level access, enabling unauthorized transactions and the ability to mint large amounts of fake tokens.
Within a few hours, the attacker had minted nearly 10 trillion UXLINK tokens on the Arbitrum blockchain, which were then exchanged for ETH, USDC, and other assets, emptying liquidity and causing the token’s price to crash by over 70%. The protocol promptly responded by alerting exchanges to freeze suspicious transactions and working with security companies to pursue and minimize further losses.
Despite these efforts, the damage had already been done, and the protocol has since focused on reinforcing security and tightening controls around multi-signature wallets and contract interactions. The latest movements of assets and conversions by the hacker have diminished hopes of a complete restoration of the stolen funds, and it remains to be seen whether additional movements will occur in the short term.
For more information on the UXLINK hack and the latest developments, visit https://crypto.news/uxlink-hack-update-hacker-moves-stolen-funds-sells-6-8m-eth/
