WazirX Suspends Withdrawals After Latest Hack of $230 Million
WazirX, a prominent Indian crypto exchange, has halted withdrawals following a significant security breach that resulted in the loss of approximately $230 million, nearly half of its reserves. The Mumbai-based firm identified the incident as a “force majeure event,” revealing that a multisig wallet with six signatories had been compromised. The attack was reportedly caused by a discrepancy between data displayed on Liminal’s interface and the actual contents of transactions.
“The cyber attack stemmed from a discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents,” WazirX stated. Lookchain, a third-party blockchain explorer, reported the theft of a range of cryptocurrencies, including Shiba Inu (SHIB), Ethereum (ETH), and Tether (USDT), among others.
Update:#WazirX has ~$230M in assets stolen. Including:
Blockchain forensics firm Elliptic and crypto investigator ZachXBT have linked the breach to North Korean hackers, with suspicion falling on the Lazarus Group, a notorious cybercriminal organisation. “The North Korea attribution is based on analysis of the on-chain transactional behavior and other information,” an Elliptic representative said.
The attacker’s pattern and techniques align with those historically used by North Korean operatives, and they have begun offloading the stolen assets through decentralised exchanges. The breach has also affected the market, with Shiba Inu memecoin prices dropping by 10% due to the sale of a substantial amount of SHIB tokens.
WazirX’s Response and Market Impact
📢 Update: We're aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding.…
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024
In response to the attack, WazirX has suspended cryptocurrency and INR withdrawals. The exchange has assured its users that it is actively investigating the incident and attempting to recover the stolen funds. CoinSwitch and CoinDCX, other leading Indian crypto exchanges, have assured their customers that their funds remain secure.
At WazirX, our commitment to transparency and community welfare is paramount. There was a cyber attack on one of our multisig wallets. Below are the preliminary findings to clarify the situation:
» Incident Overview: A cyber attack occurred in one of our multisig wallets…
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024
This incident is the latest setback for WazirX, which has faced regulatory and operational challenges, particularly following its separation from Binance earlier in 2023. Despite the ongoing issues, the exchange remains committed to resolving the breach and recovering the lost assets.
Conclusion
The $230 million WazirX security breach highlights significant risks in the cryptocurrency sector, with investigations pointing to North Korean hackers. As WazirX strives to recover the stolen funds, this incident underscores the need for heightened security and vigilance in the crypto community.
