There has been a security breach at UPCX, where an unauthorized access was made to the platform’s management account. Deposits and withdrawals have been temporarily suspended in order to protect the user assets and data. As of now, there has unauthorized transfer of approximately $70 million worth of its native UPC tokens.
Exploitation of Critical Management Accounts
According to a social media post on X (formerly known as Twitter), the incident involved exploitation of a critical management account and manipulation of the platform’s smart contract.
Blockchain security firm Cyvers Alerts was the first one to flag this suspicious activity, and identified the fact that the hacker had gained access to the address 0x4C….3583E. The hacker upgraded the ‘ProxyAdmin’ contract and executed the ‘withdrawByAdmin’ function.
This action allowed transfer of 18.4 million UPC tokens from three management accounts into a new wallet. As of now, these stolen funds have been untouched.
UPCX Responds to the Incident
To this incident, UPCX issued a security notice which confirmed unauthorized activity within its management account. As a precautionary measure, deposits and withdrawals have been suspended by the platform.
The team then also assured that the user assets remain safe and unaffected. Investigations on the other hand are ongoing and will determine the extend of the break. From the investigation reports, the platform will take further action.
Market Impact
The breach has led to a drop of 7% in the price of the UPC token. The price just before the exploit was somewhere around $4.06 but as the news of the exploit broke out, the price dropped somewhere around $3.77.
At press time, the price of the token stands at $3.83 with a dip of 4.5% in the last 24 hours as per CoinGecko.
UPCX expressed gratitude for user patience and emphasized more on alertness and urged users to rely more on official updates.
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