UXLink hack shows risks of centralized control in DeFi projects

FearsOff CEO Marwan Hachem told Cointelegraph that it was risky to keep too much centralized control in projects that “claim to be decentralized.”

Decentralized social platform UXLink said Wednesday it deployed a new Ethereum contract after a multisignature wallet exploit allowed attackers to mint billions of unauthorized tokens and crash the value of its native asset.

UXLink said its new smart contract had passed a security audit and will be deployed on the Ethereum mainnet. The project said the new contract dropped the mint-burn function to prevent any similar incidents in the future. 

The project confirmed the breach on Tuesday, saying that a significant amount of crypto was transferred to exchanges. Estimates of the losses from the hack vary, with Cyvers Alerts estimating it saw at least $11 million stolen, and Hacken placing the figure at more than $30 million. 

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