DeFi’s Core Vulnerability: UXLink’s $11 Million Hack Reveals Fundamental Design Weaknesses

UXLink, a platform operating in the decentralized finance (DeFi) sector, recently experienced a major security incident that highlights the dangers of centralized authority in blockchain-based projects. On September 22, 2025, attackers took advantage of a delegate call vulnerability within UXLink’s multi-signature (multisig) wallet, allowing them to create unauthorized tokens and siphon off assets exceeding $11.3 million, including stablecoins, ETH, and WBTC. As a result, the value of the UXLINK token plunged by over 70%, wiping out nearly $70 million in market value in just a few hours.

The attackers exploited a weakness in the multisig wallet’s governance, which let them remove current administrators, add their own address, and mint about 2 billion UXLINK tokens. These newly created tokens were quickly sold on decentralized exchanges, yielding an estimated $28.1 million. Interestingly, the perpetrator later became a victim of a phishing attack by the Inferno Drainer group, losing 542 million UXLINK tokens valued at $45.5 million. This follow-up event illustrates the chain reaction of risks in DeFi, where even hackers are susceptible to on-chain threats.

In response, UXLink issued urgent warnings, worked with exchanges to halt suspicious transactions, and enlisted blockchain security experts such as PeckShield. The team also launched an emergency token swap plan to help restore trust, though the unauthorized minting continued to disrupt the token’s stability. Authorities and regulators were informed, and UXLink committed to introducing stronger protections, including fixed supply limits and timelocks for critical operations.

Marwan Hachem, CEO of the Web3 security company FearsOff, pointed out that this event reveals deep-rooted risks in DeFi projects that “claim to be decentralized.” He cited the lack of essential security features—like timelocks, supply limits, and independent multisig reviews—as major shortcomings. “This exposes flaws in UXLink’s design,” Hachem commented, emphasizing that centralized controls in so-called decentralized systems can seriously damage community trust.

This incident has reignited discussions about the dependability of multisig wallets, which are widely used in DeFi to prevent single points of failure. Although multisig wallets are intended to boost security, the UXLink breach shows that vulnerabilities in wallet governance—such as unresolved delegate call issues—can have disastrous effects. Experts caution that projects launched without thorough audits or decentralized governance are at risk of similar exploits.

For both investors and developers, this breach highlights the importance of taking proactive security steps. Hachem advised projects to implement hardcoded supply limits, enforce timelocks for administrative changes, and regularly audit both smart contracts and multisig setups. He also stressed the need for openness, encouraging projects to disclose wallet addresses and require multiple approvals for significant transactions.

The wider crypto community has expressed alarm, as unauthorized token creation undermines supply chain integrity and weakens trust in DeFi platforms. The dramatic drop in UXLink’s price—from $0.30 to as low as $0.0000009065—serves as a clear warning of how sensitive the market is to security breaches. While UXLink’s recovery strategies, such as possible token swaps and improved governance, may help stabilize the project in the long run, the reputational impact is substantial.

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