By Key Points
- Hackers exploited UPCX’s ProxyAdmin contract, stealing $70M worth of tokens.
- 18.4 million UPC tokens taken—over 4x the current supply.
- Tokens remain unmoved, suggesting difficulty in liquidating.
- The breach hasn’t affected the broader crypto market.
The UPCX hack is raising eyebrows across the crypto community. On April 1, 2025, UPCX confirmed it suffered a massive breach resulting in the theft of 18.4 million UPC tokens—a staggering $70 million worth.
The shocking part? The stolen tokens far exceed the project’s total circulating supply—which currently sits around 4 million UPC. This means the attacker now controls more than four times the active market liquidity, putting UPCX in an extremely vulnerable position.
The breach was tracked by blockchain security firm Cyvers, who identified unauthorized actions involving UPCX’s ProxyAdmin contract. This contract governs key upgrades and permissions across the platform. The hacker upgraded the ProxyAdmin and triggered a function called withdrawByAdmin, allowing them to siphon tokens from three separate management wallets.
🚨ALERT🚨Our system has detected multiple suspicious transactions involving @Upcxofficial
It appears that someone gained access to the address 0x4C….3583E, upgraded the ‘ProxyAdmin’ contract, and executed the ‘withdrawByAdmin’ function, resulting in the transfer of 18.4M… pic.twitter.com/ytCmwpNtE1
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) April 1, 2025
So far, none of the stolen tokens have been moved. While that may seem like good news, it also signals that the hacker might be waiting for the perfect time—or method—to liquidate without crashing the token’s already fragile price.
In the bigger picture, this incident comes at a time when the crypto market is already navigating shaky ground. Coinbase’s worst quarter since the FTX collapse and Bitcoin’s Q1 2025 crash are just a few recent signs of growing volatility.
LATEST: @CyversAlerts sounded the alarm on the @Upcxofficial $70M token exploit this AM
Listen now for more details… pic.twitter.com/2R8c5wLci6
— BSCN (@BSCNews) April 1, 2025
ProxyAdmin Exploit Raises Red Flags for DeFi Security
This UPCX hack isn’t just about the money—it’s about trust and architecture. Many DeFi and crypto projects rely on upgradeable smart contracts, often controlled by centralized admin contracts like ProxyAdmin. While designed for flexibility and improvement, these contracts can become a single point of failure if not secured properly.
UPCX, which markets itself as an open-source, user-friendly crypto payment system, now faces a steep uphill climb. Although the team has mentioned applying additional security measures post-hack, no clear roadmap or technical analysis has been released to show how future exploits will be prevented.
JUST IN: UPCX HIT BY $70M SECURITY BREACH, FUNDS DRAINED VIA CONTRACT EXPLOIT REMAIN IN SINGLE WALLET
Source: @cointelegraph pic.twitter.com/U3JKCZvqwj
— Mario Nawfal’s Roundtable (@RoundtableSpace) April 1, 2025
The issue also sheds light on broader problems plaguing Web3 security. Other recent incidents, like the mysterious burn address tweet from CZ and token transfer confusion, show how lack of clarity and control continues to disrupt the space.
The fallout from the UPCX hack also brings to mind other big market shifts. For example, MicroStrategy’s relentless Bitcoin acquisition still manages to influence sentiment positively, even as security threats like this continue to expose weaknesses in smaller projects.
No Token Movement, but the Threat Still Lurks
A curious detail in this hack is that none of the stolen UPC tokens have been moved or laundered—yet. That could mean the hacker is waiting for the right moment to cash out. However, moving such a large quantity could crash the token price further, effectively reducing the potential gains.
With only a handful of holders and limited exchange listings, UPCX doesn’t have the liquidity depth to absorb even a fraction of the stolen funds. If an attempt is made to sell, the price could nosedive in minutes. This could be one reason for the current inactivity in the hacker’s wallet.
On social media, UPCX’s post about the hack has received little attention, with under 10,000 views—a surprisingly low number considering the size of the theft. That suggests UPCX’s community and visibility are still relatively small, further limiting its ability to mount a strong recovery.
UPCX (UPC) Price Performance. Source: CoinGecko – Techtoken
The hacker’s silent approach mirrors tactics seen in other crypto scandals. Some speculate the attacker might use privacy tools or even NFTs to launder assets, while others believe it could be an inside job.
As the market digests this event, attention may shift to how UPCX responds. Will they attempt a token reissue? Will they engage with authorities to freeze the hacker’s wallet? Either way, the project’s next steps are critical.
The attack also indirectly affects ongoing trends in the crypto community. For example, as investors look for more secure blockchain projects, attention may increase on use cases like crypto-funded space exploration or Bitcoin’s growing role in U.S. politics.
Smaller, newer projects like UPCX will now face even more scrutiny. The pressure is on to prove that open-source innovation can go hand in hand with security.
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