UXLINK Recovery Efforts Progress: What To Know

After the massive UXLINK phishing scam, the Web3 platform is taking decisive action to recover from its losses. As part of the UXLINK recovery efforts, the platform has unveiled a new smart contract that has successfully undergone a rigorous security audit and will be deployed on the Ethereum mainnet.

UXLINK Recovery Efforts Progress

In a recent X post , the Web3 firm has announced the latest developments within the UXLINK recovery efforts. As the platform is proactively working to restore security and trust within its ecosystem, it launched a new smart contract, which is expected to be deployed on Ethereum. The post read,

“The contract will be deployed on the Ethereum mainnet. The contract dropped the mint-burn function and we will use cross-chain partners’ service to remain a cross-chain feature.”

Further, the team announced that it has made significant progress on the token migration. They confirmed that the token ticker will remain "UXLINK" to ensure continuity. The team will submit the new contract details and migration plan to centralized exchange partners and prepare a comprehensive response to an inquiry from the Digital Asset Exchange Association of Korea.

Furthermore, the firm revealed that it has frozen addresses associated with the hack and initiated recovery procedures in collaboration with law enforcement and third-party professionals, promising full transparency in handling community losses, which will be redirected towards community development and compensation. The team wrote on X,

“We have frozen a large number of hacker-associated addresses and, in collaboration with law enforcement authorities and professional third parties, have initiated recovery procedures. All community losses will be handled with full transparency and will be redirected back to community development and compensation.”

Web3 Phishing Hack: A Detailed Analysis

According to Coin Gabbar, UXLKINK experienced a serious security breach yesterday when hackers took advantage of a flaw in the multi-signature wallet of the platform, specifically focusing on the "delegateCall" feature. As a result, assets worth roughly $30 million were stolen, including Wrapped Bitcoin (WBTC), Ethereum (ETH), and stablecoins.

After the breach, the scammers moved around 542 million tokens, valued at $43 million, to phishing addresses. Unauthorized minting was another aspect of the hacker's activities; according to PeckShield, more than 10 trillion tokens were created, beginning with an initial 1 billion tokens and then minting more.

Hackers' Downfall

Unexpectedly, the hackers who perpetrated the UXLINK phishing scam ended up losing more than $48 million in a follow-up phishing incident. Lookonchain, a blockchain analytics company, claims that the hackers' attempt to exchange their pilfered money caused large losses.

On-chain data shows two major transactions from the hacker's address: one involving 108 million tokens (valued at $9.7M) and another involving 433 million tokens (valued at $39M), totaling a substantial loss.