- Hackers exploited a contract vulnerability, forcing UPCX to halt operations.
- UPC tokens fell 7%, highlighting Web3 security flaws behind 80% of 2024 crypto thefts.
- Experts urge stronger protections as UPCX tracks stolen funds.
UPCX systems experienced unauthorized access by a hacker on April 1 who stole digital funds in mass quantities. Cyvers tracked an illegal transaction of 18.4 million UPC tokens, which totaled $70 million.
The hacker entered UPCX’s system through a wallet address and took advantage of the ProxyAdmin contract security weakness. The cybercriminal gained administrative control over the proxy contract when they updated it, which let them take money out. At the end of their analysis, the stolen assets were found in three management accounts but not yet transferred to other digital assets.
The UPCX system found and reported unauthorized access to important company account data. The platform blocked transactions and started looking into the security issue. They tell users that their personal funds stay safe and explain that they explore the methods used by the hacker.
UPCX Hack Triggers Market Drop
After the hacking happened, investors immediately reacted in the market. According to CoinGecko data, UPC tokens lost 7% of their value as their price declined from $4.06 to $3.77 on April first.
Source: CoinGecko
Cyvers Chief Technology Officer Meir Dolev explained to security experts that typical investigation methods point to past breaches that started through stolen credentials or weak system access controls.
Dolev indicates that Web3 security flaws account for 80% of thefts reported in 2024 with his research. He urged for enhanced security measures to cover wallet permissions better alongside expanded multi-signature protection and active transaction monitoring.
The UPCX system lost $70 million through a hacking incident that ranks as the biggest digital currency theft of recent times. The total losses from crypto-related hacks in March were $33 million but this latest breach exceeded these figures twice over.
Security experts and the platform team members are searching for both the stolen funds and the people responsible. Despite their success in stopping blockchain crimes, crypto theft thefts become very hard to undo because crypto deals hide users’ identities.
This cyber attack proves that crypto security risks keep increasing so security methods must be strengthened to keep digital assets safe from hackers.
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