WazirX Halts Trading After $230 Million Hack, Launches $23 Million Bounty Program
In a significant blow to the Indian cryptocurrency market, WazirX, one of the country’s largest crypto exchanges, has suspended all trading activities following a massive cyberattack that resulted in the theft of approximately $230 million worth of digital assets. The security breach, which occurred on July 18, 2024, has severely impacted the exchange’s ability to maintain a 1:1 collateral ratio with user assets.
The attack exploited a vulnerability in WazirX’s multi-signature wallet system, compromising the security of stored funds. Various cryptocurrencies were affected, with Shiba Inu tokens reportedly bearing the brunt of the theft. The incident has raised serious concerns about the platform’s security measures and its capacity to safeguard user funds.
In response to the crisis, WazirX has taken swift action. The exchange has not only halted trading but has also suspended deposits and withdrawals for all users. WazirX announced that the company has filed a police complaint and reported the incident to the Financial Intelligence Unit (FIU) and CERT-In, India’s computer emergency response team.
To recover the stolen assets, WazirX has launched an ambitious $23 million bounty program. The exchange is offering up to 10% of the recovered funds as a reward for assistance in tracking, freezing, or returning the stolen assets. Additionally, they’re offering up to $10,000 in USDT for actionable intelligence leading to the freezing of funds.
Cybersecurity experts, including the renowned investigator ZachXBT, have suggested that the attack bears hallmarks of the infamous North Korean state-sponsored Lazarus Group. This attribution adds a layer of complexity to the recovery efforts, as funds stolen by this group are notoriously difficult to retrieve.
The WazirX team is collaborating with over 500 exchanges to block identified addresses associated with the stolen funds. They are also engaging with expert groups specializing in tracking cryptocurrency transactions to enhance their recovery efforts.
This incident marks the second-largest hack of a centralized exchange in recent times, surpassed only by the DMM exploit in May, which saw a loss of $305 million. The attack on WazirX has sent shockwaves through the Indian crypto community, potentially impacting investor confidence and trading volumes across the market.
