UPCX Platform Hacked for $70 Million — Is Your Crypto Safe?
UPCX, a decentralized payment platform, was struck by a major security breach on April 1, 2025, when an attacker made off with 18.4 million UPC tokens, valued at approximately $70 million, through an unauthorized transfer.
The theft was detected around 10:57 UTC and solely targeted the platform’s management accounts. Cybersecurity firm Cyvers reported that the hack involved a smart contract vulnerability, where the attacker upgraded the ProxyAdmin contract and executed a “withdrawByAdmin” function to drain funds from three administrative wallets.
The stolen tokens, representing a large percentage of UPCX’s circulating supply, remain in a single wallet with no recorded movement as of April 2, 2025, based on Cyvers’ analysis.
Meir Dolev, CTO of Cyvers commented on the breach, “This incident mirrors attack patterns we’ve documented, underscoring the need for enhanced security around wallet permissions and transaction validation.”
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The $70 million theft adds to a concerning trend of losses in 2025, with March alone recording $33 million in crypto thefts, raising concerns over Web3 vulnerabilities.
UPCX Suspends Operations, Launches Investigation
UPCX responded quickly by locking down the platform and suspending deposits and withdrawals. In a statement posted on X, the company said, “UPCX has identified unauthorized activity involving our management account. As a precautionary measure, we are taking immediate action to ensure platform security.”
The platform assured users that personal funds remain secure and unaffected, a key message to maintain trust during the crisis. UPCX has started an internal investigation, working closely with security experts to determine the cause of the breach and implement patches.
The lack of activity in the stolen funds offers a potential window for recovery, though the breach’s scale—equivalent to approximately 5% of the project’s market capitalization—has rattled investors.
The UPC token price fell 5-7% from $4.06 to $3.77 following the news. While UPCX’s transparent handling is in accordance with industry standards, the long-term impact on user trust is yet to be determined.
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Crypto’s Security Crisis Deepens with UPCX Breach
The breach brings to light the critical need for stronger security measures across decentralized platforms.
Cyvers estimates that over 80% of Web3 losses in 2024 came from access control failures, citing this breach as a warning for the sector. The lack of any action on the stolen tokens raises questions about the attacker’s next steps—whether awaiting laundering opportunities or facing technical difficulties—possibly benefiting recovery operations by UPCX and law enforcement.
UPCX is now focused on resuming operations and strengthening its systems. The incident reaffirms the crypto industry’s advocacy for multisig wallets and runtime transaction checks to prevent similar incidents moving forward.
Through ongoing investigations, the incident also serves as a clear reminder of the stakes involved in blockchain security.
