A major security failure has rocked the Ethereum network.

The $OXYZ token, part of the Oxya Origin project, has been targeted by a hacker who compromised the project's deployer wallet.

A major security failure has rocked the Ethereum network as the $OXYZ token, part of the Oxya Origin project, was targeted by a hacker who managed to compromise the project's deployer wallet.

In an apparent coordinated attack, the bad actor was able to mint billions of $OXYZ tokens, which have seen a rapid and dramatic decline in the price. Since the incident, $OXYZ value has decreased 86%, and the breach is now under intense scrutiny.

The Incident: Attackers Mint Billions of $OXYZ Tokens

Initially detected by Cyver Alert, the abnormal transaction pattern on the Ethereum blockchain began with the deployer wallet for Oxya Origin, which usually has admin control over the $OXYZ token, being compromised.

The attacker was then able to transfer ownership of the token to some address that we can only assume was controlled by the attacker, granting them minting rights over the $OXYZ token. From there, in what appears to be a well-coordinated assault, the hacker went on to mint a staggering 9 billion $OXYZ tokens.

This move predictably crashed the market with an oversupply of the asset that was already just a few steps away from being deemed “toxic” by analysts. To quickly monetize those stolen tokens, the attacker carried out a series of swaps that netted them around $45,000 in more stable assets before performing a seemingly more legal-seeming bridge to another blockchain using the Stargate protocol.

Due to the minting and immediate liquidation of such a large number of tokens, the price of $OXYZ dropped nearly 86%, catching investors and traders off guard. But the story doesn't end there. After that, the hacker did not stop. Having minted the tokens, the next move was to transfer the remaining 8.9 billion $OXYZ to a different address, and it appears that the hacker might be planning to hold onto these funds.

A Public Plea and Final Warning to the Attacker

The Oxya Origin team has stated that a breach has occurred and has confirmed that it was compromised. The team is working to mitigate the damage and has put out a public plea for the funds taken during the breach to be returned. Offering a final opportunity for the hacker to return the funds, the project's leadership is offering a very generous white-hat bounty incentive. If the funds are returned in full, the attacker is allowed to keep 10% of the amount stolen during the breach.

The team offers a white-hat bounty with a clear condition attached—you must return 90% of the stolen funds immediately. They send the hacker a simple message: return the majority of the funds and walk away with a reward, or face the consequences of your actions.

🚨ALERT🚨Our system has identified a suspicious transaction pattern involving @OxyaOrigin on the #Ethereum network.🔍 Root Cause:The Oxya Origin deployer wallet appears to have been compromised, resulting in the ownership of the $OXYZ token being transferred to a suspicious address.… https://t.co/dlAmQtn5qM

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) April 23, 2025

If the attacker does not comply, the Oxya Origin team has vowed to do all that's necessary to track down the attacker's identity and to recover the stolen funds. The means they'll use include blockchain forensic experts, legal action in several jurisdictions, and reporting the incident to exchanges and authorities who can help serve the hacker with justice.

Legal and Forensic Action on the Horizon

Concerns have been raised over the security of smart contract deployer wallets and the broader ecosystem's vulnerability to these types of attacks, especially considering a recent breach. The Oxya Origin team is now working with blockchain forensic experts to trace the stolen assets and possibly identify the hacker based on the transactions executed on the blockchain.

The complexity of tracing the funds highlights the seriousness of the attack and the motivation behind it. Legal teams are involved in several locations because the hack affected various platforms, and they've had to work both collaboratively and independently to figure out where the stolen assets were moved. Ultimately, Oxya's team feigns an openness to forgiveness while hinting at the possibility of employing a legal recovery strategy that could leverage any number of laws covering hacking and fraud.

Moreover, the project is notifying relevant exchanges and authorities about the incident. This is a crucial move to prevent the wrongdoer from covering up the theft or using the pilfered crypto to trade assets via any crypto platforms. The whole thing is being framed as a "serious" event with a "determined" undertaking to resolve it.

The Future of Oxya Origin and $OXYZ

The hack has had a major impact on the value of the $OXYZ token and on investor confidence. But even as the Oxya Origin project itself was being hacked, the team was working diligently to solve the problem for their community.