Upbit Puts UXLINK on Alert List Following Red Flags

Upbit, the largest Korean exchange, has listed UXLINK only hours after the web3 social media app reportedly suffered an $11 million attack.

Amidst investor concerns, however, the exchange incorporated safety mechanisms to help traders make informed decisions.

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UXLINK Drops 70% Despite Upbit Listing

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As of this writing, the UXLINK token price is down almost 70% to trade for $0.09404, a sour sentiment fueled by the recent attack on the social media app.

Despite the incident, the largest Korean exchange, Upbit, has listed UXLINK as a trading warning token. The exchange revealed the move in an official X (Twitter) post, articulating the designation notice.

“UXLINK Trading Warning Designation Notice. UXLINK (UXLINK/KRW, UXLINK/BTC, UXLINK/USDT) has been designated as a trading warning item by DAXA member companies,” read the post.

Based on the post, UXLINK will trade against the Korean Won (KRW), Bitcoin (BTC), and Tether’s USDT stablecoin.

Digital Asset eXchange Association (DAXA) has flagged all these trading pairs with an investment warning.

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DAXA was established to promote the sound development of the digital asset industry. It advocates for investor protection by creating a transparent and secure trading environment.

Notably, the designation of UXLINK as a cautionary investment asset aligns with stipulations in the Enforcement Decree of the Virtual Asset User Protection Act.

“The deposit service for UXLINK has already been suspended. Resumption of deposit services will be announced following procedures after the designation as a cautionary asset,” Upbit said in a statement.

Why Upbit Resorted to UXLINK Cautionary Designation

Upbit ascribed the designation to the recent hacking incident, adding that the issuer of the UXLINK token failed to disclose material information about the asset properly.

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“These issues indicate multiple deficiencies that could potentially cause user losses. Therefore, Upbit is designating UXLINK as a cautionary investment asset for investor protection,” the exchange articulated.

The designation, which started on September 23, 12:00 KST, could continue until around October 17, 2025, 23:59 KST. However, this duration depends on review findings.

In the meantime, and from this notice, UXLINK deposits will not be reflected in accounts. Any deposits made will be subject to return.

Elsewhere, UXLINK revealed ongoing efforts to track the stolen tokens, highlighting collaboration with other exchanges.

“A large portion of the stolen assets has already been frozen, and collaboration with exchanges remains strong,” UXLINK revealed.

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The social media platforms are reportedly also leveraging support from the blockchain analytics tool PeckShield to support the ongoing investigation and strengthen recovery efforts.

Nevertheless, it articulated that there are no signs of individual user wallets targeted by the attack. Against this backdrop, it indicated plans to compensate and make all accounts affected by the attack whole.

For its part, PeckShield has cautioned users against interacting with the UXLINK token, as the hacker has gained the mint role.

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Reportedly, the bad actor has already minted two billion UXLINK tokens on Arbitrum.