UPCX halts operations after unauthorised token transfer

UPCX, a decentralised payment network, has temporarily suspended deposits and withdrawals following an unauthorised transfer of 18.4 million UPC tokens, valued at approximately $70 million.

The incident involved unauthorised access to three management accounts, prompting immediate security measures to protect user assets.

Blockchain security firm Cyvers confirmed that an unauthorised individual gained access to a specific address and manipulated the ProxyAdmin contract, executing a withdrawal function that led to the token transfer.

However, UPCX emphasised that user assets remain secure and unaffected by the breach.

As a precautionary measure, UPCX took swift action to prevent any further malicious activity, such as swaps or additional transfers.

Cyvers supported UPCX’s claim, stating that no swaps were detected at the time of the incident.

UPCX is actively investigating the breach and has assured users that updates will be provided as soon as possible.

The company expressed gratitude for the community's patience and cooperation during this period.

This incident follows a recent major security breach at Bybit, where hackers allegedly linked to the Lazarus Group stole approximately $1.5 billion in digital assets.

The UPCX breach highlights ongoing security challenges in the decentralised finance (DeFi) space, emphasising the need for robust security protocols to safeguard user assets.