Centralized Control Comes at a Price: UXLINK’s $11 Million Hack Reveals the Overlooked Dangers of Multisig

UXLINK, a Web3 social platform, recently experienced a major security incident that revealed weaknesses in its multi-signature wallet setup and sparked debate over centralization risks in Ethereum smart contracts. On September 22, 2025, an attacker exploited a delegateCall flaw, gaining administrative access to the wallet. This breach enabled the attacker to create roughly 10 trillion UXLINK tokens—far surpassing the existing supply—and siphon off $11.3 million in assets, including stablecoins, ETH, and WBTC The Block, [ 1 ]. The unauthorized token creation led to a price crash of more than 70%, dropping from $0.30 to $0.09 and wiping out close to $70 million in market value within a few hours CoinPedia, [ 3 ].

The attacker took advantage of a serious governance weakness in the multisig wallet, allowing them to remove current administrators, assign a new owner, and carry out large token sales on decentralized exchanges. Blockchain analysis showed the hacker swapped the stolen UXLINK tokens for 6,732 ETH—worth $28.1 million—across six different wallets. Although the attacker quickly tried to cash out, most of their funds were frozen by exchanges, which helped limit further damage The Block, [ 1 ]. This event highlights the dangers of centralized control in multisig wallets, where a single vulnerability can jeopardize the entire system.

In response, UXLINK worked closely with exchanges to freeze suspicious deposits and temporarily suspend trading. The team also revealed plans for a token swap to address the unauthorized minting and stabilize the platform. A new smart contract with a capped supply is being developed to prevent similar inflation in the future Coin Telegraph, [ 2 ]. While assuring users that individual wallets were not compromised, the team advised everyone to confirm transactions through official sources. Interestingly, during the exploit, the attacker themselves became a victim of a phishing scam by the Inferno Drainer group, losing over 542 million of the stolen tokens CoinPedia, [ 3 ].

This breach has broader consequences for Ethereum’s smart contract ecosystem. While multisig wallets are often seen as a security feature, this case shows they can become single points of failure if governance is too centralized. The delegateCall vulnerability exploited here underscores the importance of thorough code audits and more decentralized governance structures. The incident has also renewed discussions about the dangers of permissioned minting functions, even in projects that claim to be decentralized.

Both market observers and regulators are now paying closer attention to how blockchain projects balance security and decentralization. UXLINK’s planned token swap and its cooperation with blockchain security firms like PeckShield and Hacken are steps toward regaining trust, but the incident stands as a warning for projects that depend on centralized multisig arrangements. As UXLINK works to recover, the

community will likely push for greater transparency, stronger smart contract audits, and more decentralized governance to reduce the risk of similar attacks in the future.