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UNCX Network Hack Drains $86K From Ethereum Token Pool

UNCX Network Hack Drains $86K From Ethereum Token Pool. Source: David Whelan, CC0, via Wikimedia Commons

UNCX Network, a cryptocurrency token vesting platform formerly known as UniCrypt, suffered a security exploit on Wednesday that drained approximately $86,000 from its shared Ethereum token pool. Blockchain security firm Blockaid warned that the attack was still ongoing, raising concerns about additional losses.

UNCX Network provides token-locking services that prevent project insiders from selling their cryptocurrency holdings before scheduled release dates. The platform currently secures approximately $179.7 million in assets across multiple blockchains, including $111.4 million on Ethereum.

According to Blockaid, the attacker exploited a vulnerability in the platform's shared vesting pool through a single draining transaction, allowing unauthorized withdrawals of tokens belonging to other projects.

The exploit began when the hacker created several vesting positions within the contract. The attacker subsequently released a large position, deposited additional tokens into the pool, and canceled another position that had received extra funds.

This sequence created a small remaining vesting position that could reportedly access tokens belonging to other users, exposing a weakness in the smart contract's accounting mechanism.

UNCX Network promotes its token vesting contracts as audited systems designed to prevent locked assets from being transferred, traded, staked, or added to liquidity pools before their scheduled release.

Blockaid identified two cryptocurrency wallets associated with the exploit. Etherscan data showed that one wallet held approximately $5,874 across eight transactions.

Despite the security breach, the UNCX token experienced minimal price movement. According to BeInCrypto, UNCX traded around $24.80, gaining 0.16% over 24 hours, while its market capitalization remained near $905,000.

UNCX Network had not issued a public statement addressing the exploit at the time of the original report.

The incident highlights continuing security risks across decentralized finance (DeFi), particularly for smaller cryptocurrency projects that depend on shared smart contracts to protect investor assets.

Similar vulnerabilities have caused significant damage elsewhere in the industry. Decentralized exchange Full Sail shut down following an approximately $91,000 exploit in August, while Notional Finance lost $1.73 million in September because of an integer overflow vulnerability in older contracts.

With the UNCX exploit reportedly continuing, attention remains focused on identifying affected projects, preventing further unauthorized withdrawals, and determining whether the platform can secure its Ethereum token vesting pool.

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