WazirX – ₹1,965 Crore Hacked : Massive Security Breach at Indian Crypto Currency Exchange

WazirX

India’s largest crypto exchange, WazirX, has fallen victim to a massive hacking attack. Assets worth a staggering ₹1,965 crore were transferred from the exchange’s accounts to unknown wallets, leaving investors worried and raising serious questions about the security measures in place at the exchange. As the investigation unfolds, the exact details of the breach remain unclear, but the implications are significant for both WazirX and its users.

The Hacking Incident

The breach reportedly occurred during the budget season, a critical period when the crypto sector was eagerly awaiting potential concessions on tax and TDS announced in previous budgets for digital assets. According to initial reports, cryptocurrencies worth ₹1,965 crore were transferred to an unknown wallet following the hack. This massive transfer has put investors on high alert, with many fearing for the safety of their funds.

Response from WazirX

Despite reaching out for confirmation, Republic Business and DNA India reported that WazirX has yet to respond with an official statement on the total loss. However, the exchange did acknowledge the breach via Twitter, stating, “We are aware that one of our multisig wallets has suffered a security breach. Our team is actively investigating the incident.” In an effort to protect remaining assets, WazirX has halted all withdrawals, including deposits in both rupees and cryptocurrencies. This decision, while necessary for security reasons, has left many investors’ funds temporarily inaccessible.

The Scale of the Theft

Blockchain data reveals that the hacker managed to move significant amounts of various cryptocurrencies. These include:

• $100 million in Shiba Inu (SHIB)
• $52 million in Ethereum (ETH)
• $11 million in Polygon (MATIC)
• $4.7 million in Floki (FLOKI)
• $3.2 million in Phantom (FTM)
• $2.8 million in Chainlink (LINK)
• $2.3 million in Fetch.AI (FET.AI)

Additionally, other crypto tokens were also reportedly part of the scam. The use of Tornado Cash, a crypto mixer, has been highlighted in media reports as a method the hacker is using to obscure the transaction history, making it difficult to trace the stolen assets.

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Compromised Security Measures

The breach involved a multi-signature (multisig) wallet on the Ethereum network, which is designed to require multiple approvals from stakeholders to authorize transactions. This added layer of security is intended to protect against unauthorized transfers, but in this case, it appears to have been compromised. The exact method of the breach is still under investigation, but the fact that a multisig wallet was involved indicates a sophisticated attack.

Investor Concerns

The hacking incident has understandably caused significant concern among WazirX investors. The suspension of withdrawals means that many users are currently unable to access their funds, adding to the anxiety. The use of Tornado Cash by the hacker to hide transaction history further complicates efforts to recover the stolen assets. As the investigation continues, investors are left in a state of uncertainty, hoping for a swift resolution and the recovery of their funds.

Conclusion

The hacking of WazirX, resulting in the theft of ₹1,965 crore worth of cryptocurrencies, underscores the urgent need for enhanced security measures in the crypto exchange industry. As the largest crypto exchange in India, WazirX’s breach has far-reaching implications, not only for its users but for the broader crypto market. The incident serves as a stark reminder of the vulnerabilities that exist in the digital asset space and the importance of robust security protocols. As investigations proceed, the crypto community will be watching closely for updates and hoping for the swift recovery of the stolen assets.

(The above is only as per the currently available reports. Further confirmations are required.)