UXLINK Strikes Back: Token Unlocks and Compensation After $30M Hack Shock
UXLINK’s Post-Hack Recovery Plan: Token Unlocks, Compensation, and Community Vote
UXLINK, one of the most prominent Web3 social platforms, has revealed a comprehensive two-phase recovery plan designed to stabilize its ecosystem and compensate users impacted by last month’s devastating hack. The plan, which includes token unlocking, swap mechanisms, and compensation funded from both recovered assets and Treasury reserves, will be subject to a community vote on October 4 through an on-chain Snapshot proposal.
The announcement comes less than two weeks after UXLINK suffered a severe security breach on September 22, resulting in the loss of over $30 million in assets and the unauthorized minting of trillions of tokens. With investor confidence shaken and token prices plummeting to all-time lows, the recovery plan marks a critical moment in UXLINK’s effort to restore stability and credibility within its community.
Token Holders to Vote on Recovery Plan
The cornerstone of UXLINK’s recovery process is transparency and user participation. In an official statement, the company confirmed that token holders will have the opportunity to vote on October 4 regarding the adoption of the proposed recovery measures.
The two-phase proposal includes:
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Token Unlocking: Impacted users will receive an initial allocation of tokens that had been previously locked. These unlocked tokens will be part of both swap programs and direct compensation plans.
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Compensation Measures: UXLINK plans to use a combination of recovered funds from centralized exchanges, resources secured through its litigation team, and a portion of its Treasury reserves to compensate affected users.
A company spokesperson emphasized that fairness, transparency, and inclusivity will remain at the heart of the process, stating:
“We will try our best to resume UXLINK trading on most exchanges and encourage all holders to participate in the vote. Our commitment is to ensure fairness throughout the swap and compensation process.”
Trading Suspension and Price Collapse
In the aftermath of the hack, UXLINK suspended new trading activities across major exchanges, sparking concern among retail investors. The suspension was designed to prevent further market manipulation and unauthorized activity, but the immediate effect was a sharp decline in token value.
On the day of the hack, September 22, UXLINK was trading at $0.3237. Within hours, the price collapsed to an all-time low of $0.000012, wiping out nearly all market capitalization. While the token has since managed a partial rebound, its performance remains under extreme pressure.
At press time, UXLINK is valued at $0.0888, down 36% in the past 24 hours, 21% over the past week, and 72% over the past month. Analysts note that while the upcoming recovery plan could stabilize the price, investor sentiment remains fragile.
Background: How the UXLINK Hack Unfolded
On September 22, UXLINK disclosed a major security breach involving its multi-signature wallet. According to initial investigations, the attacker illicitly transferred millions of dollars’ worth of assets, including ETH, WBTC, and various stablecoins, to a combination of centralized and decentralized exchanges.
In total, the hacker stole more than $30 million in assets and approximately 542 million tokens, worth around $43 million, were redirected to phishing addresses.
Perhaps more concerning than the theft itself was the unauthorized minting of new tokens. The attacker initially minted 1 billion UXLINK tokens, later increasing this number multiple times, ultimately producing more than 10 trillion tokens. This unchecked inflationary attack severely destabilized the token economy, undermining trust in UXLINK’s protocol and causing long-term damage to market confidence.
Community Reactions and Investor Anxiety
The UXLINK hack quickly became one of the most-discussed incidents in the crypto community, with investors voicing frustration over the scale of the exploit and the collapse of token value. Social media platforms saw widespread criticism, with some questioning UXLINK’s security infrastructure and the company’s ability to recover from such a significant blow.
Despite the criticism, some investors remain cautiously optimistic. A segment of the community has expressed support for the recovery plan, noting that UXLINK’s willingness to unlock Treasury reserves and engage in litigation demonstrates accountability. Others, however, remain skeptical about whether the measures will be sufficient to repair both the financial damage and reputational harm.
Industry Context: Hacks Continue to Plague Web3
The UXLINK breach is the latest in a string of high-profile Web3 exploits that have shaken confidence in decentralized protocols. In 2025 alone, billions of dollars have been siphoned from DeFi and Web3 platforms through smart contract vulnerabilities, compromised private keys, and phishing attacks.
Cybersecurity experts point out that while blockchain technology offers transparency and immutability, it remains susceptible to poorly secured wallets, third-party integrations, and governance loopholes. In UXLINK’s case, the reliance on a multi-signature wallet—typically considered a safer option—highlights the evolving sophistication of hackers targeting digital assets.
The Road Ahead: Can UXLINK Recover?
Whether UXLINK can regain its footing will largely depend on three factors:
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Community Support: The upcoming Snapshot vote will be critical in gauging user trust. A strong voter turnout and approval of the recovery plan could signal renewed confidence.
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Exchange Listings: UXLINK’s ability to resume trading on major centralized exchanges will play a significant role in stabilizing liquidity and price. Without broad exchange support, recovery efforts may stall.
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Litigation and Asset Recovery: The company’s pledge to use recovered funds from exchanges and its legal team’s efforts will be closely monitored. Any tangible progress in reclaiming stolen assets could provide a major boost to credibility.
Analysts suggest that while the road to recovery will be long, UXLINK’s proactive approach is preferable to the “radio silence” strategy taken by some projects after similar breaches. By openly communicating with its community and seeking consensus through voting, UXLINK may be able to rebuild trust gradually.
Conclusion
The UXLINK hack of September 22 stands as one of the most damaging Web3 security breaches of the year, with over $30 million stolen and trillions of tokens fraudulently minted. In response, UXLINK’s two-phase recovery plan aims to unlock tokens, provide compensation to victims, and restore trading activity on exchanges.
While uncertainty remains high, the upcoming Snapshot vote on October 4 will be a pivotal moment for the project, potentially charting a path toward stability. Whether UXLINK can rebuild investor trust, resume trading, and withstand long-term scrutiny will define not only the platform’s future but also broader conversations about the resilience of Web3 ecosystems.
For now, all eyes are on UXLINK’s community, as token holders decide the next chapter in the platform’s turbulent journey.
Source: Newscrypto
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