Recently, blockchain security firm Cyvers Alert reported that the Indian exchange WazirX was targeted in an exploit that resulted in approximately $235 million being stolen. The firm noted that multiple suspicious transactions were detected involving WazirX’s Safe Multisig wallet on the ETH network, leading to a significant amount of funds being moved to a new address. Additionally, the stolen assets included a variety of tokens such as SHIB, ETH, MATIC, $PEPE, USDT, and GALA.
In response to the security breach, WazirX confirmed that one of its multisig wallets experienced a breach, prompting the temporary pausing of INR and crypto withdrawals to ensure the safety of users’ assets. This incident has raised concerns about the security of funds on the platform and the impact on users who may have been affected by the hack.
There have been suggestions that North Korea-backed hacker Group Lazarus could be involved in the attack on WazirX. Cyvers indicated that the use of TornadoCash to fund the transactions resembled tactics used in previous high-profile attacks linked to Lazarus Group. While it is still early to definitively establish a connection, the similarities are troubling and highlight the ongoing threat posed by sophisticated hacking groups in the cryptocurrency space.
WazirX is recognized as one of the largest cryptocurrency trading platforms in India. The firm has faced scrutiny in the past, including a public dispute over its ownership structure which involved conflicting statements from the founder, Nischal Shetty, and Binance’s former CEO, Changpeng Zhao. These controversies have added to the challenges facing WazirX as it navigates the evolving landscape of cryptocurrency exchanges and regulatory oversight.
The WazirX hack underscores the ongoing risks and vulnerabilities present in the crypto industry, particularly concerning the security of exchanges and user funds. It serves as a reminder of the importance of robust security measures and proactive risk management practices to safeguard against potential threats and attacks. The incident also highlights the need for increased collaboration between industry stakeholders, regulators, and security experts to address cybersecurity challenges effectively.
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