In the latest crypto exploit, the blockchain-based open-source payment platform UPCX has lost approximately $70 million worth of tokens, with hackers gaining unauthorized access to administrative withdrawals.
The incident was first flagged by blockchain security firm Cyvers, identifying a suspicious movement of 18.4 million UPC tokens. The estimated value of the stolen funds stood at $70 million at the time.
As per Cyvers’s finding, the attacker accessed a UPCX address and modified its ProxyAdmin contract. With exploiting this upgrade, the hacker executed a function and enabled withdrawals with transferring funds from three different management wallets.
In response to the breach, UPCX suspended deposits and withdrawals on the platform and the team reassured users’ assets were not affected. The team also said that an internal investigation is underway.
Following the incident, platfrom’s UPC token experienced a notable price drop with it declining over 7% to as low as $3.7 after the news.
As the Web3 industry continues to expand, security remains a critical challenge with a number of such exploits taking pace now and then. Noting this incident, several experts are now stressing that enhanced cybersecurity frameworks and better access controls are crucial to preventing such large-scale exploits in the future.
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