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Karma hits: UXLINK hacker just got hacked

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Karma hits: UXLINK hacker just got hacked

Following the news of a major hacking attack on the UXLINK project that saw millions of dollars worth of cryptocurrencies stolen, the hacker has now suffered a hack himself, losing an even bigger fortune in what can only be a twist of poetic justice.

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Indeed, earlier this week, blockchain security firm Cyvers reported that UXLINK’s multisig wallet was compromised in a sophisticated breach, where the attacker manipulated access rights to gain control and siphoned off $11.3 million in assets, including $4 million in USDT, $500,000 in USDC, 3.7 WBTC, and 25 ETH.

Then, the perpetrator quickly laundered the stolen stablecoins across Ethereum and Arbitrum, with conversions into DAI and ETH to cover their tracks. In addition, the attacker transferred 10 million UXLINK tokens, worth about $3 million, into a separate wallet.

As it happens, UXLINK acknowledged the incident, saying its team had reached out to security experts, notified centralized and decentralized exchanges to freeze suspicious deposits, and reported the matter to law enforcement.

Well, how the turntables

But then the story takes an unexpected turn. According to the blockchain analysts at Lookonchain, the UXLINK hacker themselves fell victim to a phishing attack, losing a staggering 542 million UXLINK tokens valued at roughly $48 million.

This was a rare case where a hacker not only pulls off a multimillion-dollar exploit but also almost immediately suffers an even greater loss at the hands of another attacker.

Meanwhile, the UXLINK saga is the latest in a string of high-profile security breaches plaguing the crypto industry. In September alone, attackers stole 192,600 SOL ($41 million) from Swiss crypto platform SwissBorg, $2.4 million from decentralized finance (DeFi) protocol Nemo, and $2.3 million from Shibarium’s bridge to Ethereum.

Elsewhere, a Bitcoin (BTC) developer raised an alarm back in February about the bug in the Bitcoin Lightning network, allowing attackers to steal users’ BTC remotely from affected lightning nodes, saying it affected those using LND older than 0.18.5 and LITD older than 0.14.1.

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