Recently, the blockchain security firm Cyvers Alert made a shocking revelation regarding the Indian exchange WazirX. According to their findings, WazirX was exploited for approximately $235 million. This exploitation involved suspicious transactions from WazirX’s Safe Multisig wallet on the ETH network, totaling $234.9 million. The caller of each transaction was funded by Tornado Cash, raising red flags about the security of the exchange.
The stolen assets from WazirX’s security breach were significant. They included 5.43 trillion SHIB tokens valued at $102 million, 15,298 ETH worth $52.5 million, 20.5 million MATIC worth $11.24 million, 640.27 million $PEPE worth $7.6 million, 5.79 million USDT, and 135 million GALA worth $3.5 million. The attacker was reported to be selling and converting these assets to ETH, further complicating the situation.
In response to the security breach, WazirX confirmed the incident in a post on their platform and assured users that they were actively investigating the breach. As a precautionary measure, they temporarily paused INR and crypto withdrawals to safeguard user assets. Meanwhile, cybersecurity experts from Cyvers suggested that the North Korea-backed hacker Group Lazarus might be behind the attack. This raised concerns about the complexity and potential motives behind the exploitation of WazirX.
Implications for WazirX and the Crypto Industry
WazirX, being one of the largest crypto trading platforms in India, faces significant challenges following the security breach. This incident comes on the heels of a public dispute over WazirX’s ownership structure, adding further complexity to the situation. The involvement of Lazarus Group, a notorious hacking group targeting the crypto industry, poses serious threats to both WazirX and the broader crypto ecosystem.
The exploitation of WazirX for $235 million is a stark reminder of the vulnerabilities inherent in the crypto industry. The incident raises questions about the security measures in place at major exchanges like WazirX and the potential involvement of sophisticated hacking groups like Lazarus. Moving forward, it is crucial for exchanges to enhance their security protocols and collaborate with cybersecurity experts to prevent similar breaches in the future.
Leave a Reply