DeFi Smart Contract Weaknesses Face Examination Following UXLINK's $11 Million Breach

UXLINK has completed an extensive security review of its updated token contract, representing a major milestone in addressing the $11.3 million security breach that took place on September 22, 2025. The attack exploited a "delegateCall" flaw in the project’s multi-signature wallet, allowing the perpetrator to create roughly 2 billion UXLINK tokens and withdraw assets such as $4.5 million in stablecoins, 3.7 WBTC, and 25 ETH. The team has confirmed that the revised contract is now live on the

mainnet, with minting and burning functions removed to ensure a capped supply and reduce future vulnerabilities [1].

The exploit led to a dramatic 70% drop in UXLINK’s token value, plummeting from $0.30 to $0.09 and wiping out about $70 million in market cap. Chainalysis reports indicate that 490 million tokens were sold through decentralized exchanges (DEXes), converting to 6,732 ETH (worth $28.1 million). Centralized platforms like Upbit and OKX halted deposits from flagged wallets to prevent additional losses [2]. This incident also exposed deeper weaknesses in decentralized systems, with experts warning that such exploits could erode confidence in unaudited smart contracts [3].

To address the situation, UXLINK is executing a 1:1 swap of old tokens for those on the new contract, working closely with leading exchanges to ensure a smooth transition. The redesigned system shifts cross-chain functionality to off-chain solutions or partner networks, lessening dependence on on-chain minting. The team has stressed its commitment to transparency, collaborating with PeckShield and law enforcement to track stolen funds and freeze hacker-controlled addresses. Exchanges such as OKX and Bybit have agreed to support the migration, which is set to begin on September 23, 2025 [1].

In an unexpected development, the attacker—after making off with $28.1 million—became a victim of a phishing scam associated with the Inferno Drainer network. This secondary breach resulted in the theft of over 542 million UXLINK tokens, highlighting the persistent dangers within decentralized finance. Nevertheless, UXLINK stated that the majority of stolen assets remain frozen, and investigations are ongoing to follow the money trail and recover funds [3].

This event has brought renewed attention to the importance of smart contract security, especially for social infrastructure projects. While UXLINK’s 55 million users were not directly impacted, the breach poses indirect risks to the platform’s reputation. The project’s rapid actions—including audits, exchange partnerships, and regular updates—reflect a broader industry push for tighter regulations and mandatory audits in the evolving DeFi sector of 2025 [2].

Industry observers point out that the hack’s aftermath saw trading volumes soar by 1,360% to $478 million. Although panic selling caused significant value loss, the potential for price recovery depends on UXLINK’s efforts to rebuild trust through open governance and a fixed token supply. By focusing on supply limits and cross-chain collaborations, the project aims to restore investor confidence in a stablecoin market valued at $280 billion [3].