UXLINK’s Two-Phase Recovery Plan: What You Need to Know

In a post-hack development, UXLINK, a prominent social Web3 platform, has announced plans to unlock tokens and provide compensation to affected users. On October 4, the firm will launch an on-chain Snapshot vote for its two-phase recovery plan .

Token Holders to Vote on Key Proposal

As part of its recovery plan following the massive security breach that took place on September 22, UXLINK is launching an on-chain Snapshot vote on October 4. The two-phase proposal includes token unlocking and compensation plans.

Notably, the proposal intends to unlock a portion of tokens for users affected by the hack, which will be included in the swap and compensation plans with centralized exchanges and on-chain users. The firm also aims to utilize all recovered funds from exchanges, along with resources from the litigation team and a portion of Treasury funds, to compensate impacted users.

Further, the company has promised to resume crypto trading in the near future. Underscoring the team’s sincerity and commitment, they added,

“We will try our best to resume new UXLINK trading on most exchanges and encourage our existing holders to vote. We’re committed to fairness and transparency throughout the swap and compensation process.”

Token Price Continues to Fall

Since the UXLINK hack, the token is facing increased pressure, with the price falling to its all-time low. On September 22, the cryptocurrency was trading decently at $0.3237, but after the devastating incident, it slipped to a severe low of $0.000012.

Although it managed to recover from this ATL, it is still facing downward pressure, trading in the red. At press time, the altcoin is valued at $0.08880, down by 36% in a day, 21% in a week, and 72% in a month.

Background: What Happened to UXLINK?

“We have identified a security breach involving our multi-signature wallet, resulting in a significant amount of cryptocurrency being illicitly transferred to both CEXs and DEXs,” announced the platform after identifying the incident. On September 22, the firm faced a serious security breach , where a hacker stole more than 30 million in assets, including stablecoins and prominent cryptocurrencies like ETH and WBTC. Following the exploit, the scammer swiftly transferred approximately 542 million tokens, valued at around $43 million, to phishing addresses.

The breach was exacerbated by the attacker's unauthorized minting of tokens. The hacker initially minted 1 billion coins and then created another 1 billion, before ultimately minting more than 10 trillion tokens.