Irony Strikes as Crypto Hacker Becomes Victim of Phishing Attack

By: Eliza Bennet

In an unexpected twist of events, a crypto hacker who was responsible for a significant breach of the AI-powered Web3 social platform UXLink fell victim to a phishing attack, losing an estimated $50 million worth of the cryptocurrency UXLINK. Blockchain security platform Scam Sniffer reported on September 23 that the attacker, who had previously exploited UXLink, became susceptible to a notorious phishing scheme purportedly orchestrated by Inferno Drainer. Inferno Drainer is infamous for its "draining-as-a-service" offerings, selling phishing kits and creating fake websites to execute former scams.

The irony is palpable as details emerged about the UXLink hack that originally took place on September 22. The perpetrator executed a delegateCall function that allowed them to gain and subsequently strip admin privileges from the platform's smart contract. This unauthorized access resulted in the theft of several cryptocurrencies including $4 million in USDT and $500,000 in USDC, as well as 3.7 wrapped Bitcoin and 25 ETH. These assets were swiftly swapped into DAI and dispersed across the Ethereum and Arbitrum networks.

By the subsequent day, developments escalated as the attacker minted an additional 2 billion UXLINK tokens, enabling them to liquidate these assets across decentralized and centralized exchanges for substantial profit. Despite these actions, the hacker was ironically ensnared by similar phishing tactics utilized by Inferno Drainer, leading them to lose 542 million UXLINK tokens.

UXLink has been actively trying to limit further damage. In a bid to reclaim some stability, the platform has engaged with various crypto exchanges to freeze the stolen funds and solicited the expertise of blockchain security firm PeckShield. They also announced plans to initiate a token swap to maintain the integrity of their token economy. As the investigation unfolds, UXLink's official communications urge users and exchanges to remain vigilant against suspicious activities.