Dear UBX Users,
Thank you for your continued trust and support of UBX. Your companionship and recognition have always been our driving force and the source of our relentless pursuit of excellence to become an industry benchmark. We deeply regret the recent hacking incidents on the UBX platform, as well as the intense market volatility caused by price manipulation, which led to significant asset losses. These events have prompted us to conduct a comprehensive review of our current management and risk control systems. With sincerity, we would like to explain the incidents and share our future plans with you.
Incident Description
Starting on November 4, 2024, UBX began receiving complaints from multiple users regarding stolen exchange accounts and personal asset losses due to compromised registered email accounts. At the same time, the UBX platform was targeted by a series of malicious hacker attacks. To ensure user asset security, the operations team implemented a manual review process for withdrawals on November 7, temporarily slowing down withdrawal speeds. To address this, the company integrated an electronic banking reconciliation system, which was officially launched on November 18, restoring smooth withdrawal processes. However, on November 23, a black swan event occurred, leading to the suspension of user withdrawals on November 25.
As a technology-driven platform, UBX’s core profits stem from the operations of its quantitative team, which uses precise strategies and efficient execution to continuously create value for users. However, while quantitative trading offers high returns, it also carries inherent risks.
On November 23, 2024, during a period of extreme market volatility, UBX’s quantitative fund department encountered an unprecedented black swan event. A technical anomaly in Binance’s trading system caused dramatic short-term price fluctuations in the WBTC (Wrapped Bitcoin) market. As a result, our quantitative team, which relied heavily on data monitoring from top exchanges, experienced inaccuracies in judgment due to overly reactive strategies from our AI engine on decentralized trading platforms. This led to unexpected risk exposure in both spot and futures long positions, causing significant asset losses for the company.
(K-line chart illustrating the WBTC event at the time of occurrence. Source: Binance Official Exchange)
Our Commitments
In response to these events, we have conducted a thorough review and taken swift action to implement systemic solutions that safeguard user interests to the greatest extent while ensuring the company’s stable growth:
1.Protecting User Interests
The company will comprehensively optimize and restructure its asset portfolio to ensure the stable operation of the platform while maximizing the protection of all users’ rights and interests.
2.Enhancing Risk Control Mechanisms
This incident has been a wake-up call. We have initiated a comprehensive upgrade of our risk control systems and quantitative AI engine, including expanding the sources of market monitoring data, strengthening cross-platform data verification mechanisms, and improving the risk control department’s ability to predict and assess extreme market fluctuations. These measures aim to prevent similar incidents from occurring in the future.
3.Steadily Advancing Merger and Listing Plans
Despite the challenges, the company’s planned mergers and listing strategies will proceed steadily as scheduled. These strategies will further strengthen the company’s core competitiveness in the industry and provide stronger assurances for all users and investors.
4.Resolution Process
Detailed solutions for asset restructuring and implementation will be announced to all users within the next seven days. Until the specific restructuring plan is implemented, users are advised not to engage in trading or fund transfer operations to avoid unnecessary asset loss risks. Meanwhile, the platform will temporarily suspend deposit and withdrawal functions.
Future Outlook
We understand that user trust is the most valuable asset of the company. Moving forward, UBX will use this incident as an opportunity to continuously optimize platform services, enhance risk control capabilities, and improve operational efficiency. Our goal is to provide users with a safer, more stable, and efficient digital asset investment and trading experience.
Finally, we sincerely thank you for your understanding and support. UBX is committed to rebuilding trust through concrete actions, and we look forward to working hand in hand with each of you toward a brighter future!
UBX Team
[November 30, 2024]
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