Indian cryptocurrency exchange WazirX recently fell victim to a massive hack, resulting in the loss of approximately $235 million. The exchange has taken immediate action by suspending all cryptocurrency withdrawals from its platform to prevent further losses.
According to reports from blockchain security firm Cyvers Alert, suspicious transactions were detected involving WazirX’s Safe Multisig wallet on the Ethereum network. A total of $234.9 million was transferred to a new address, with each transaction funded by Tornado Cash. The stolen assets included various cryptocurrencies such as SHIB tokens, ETH, MATIC, $PEPE, USDT, and GALA, which were being sold and converted to ETH by the attacker.
In response to the breach, WazirX posted a statement on July 18 confirming the security incident involving one of its multisig wallets. The platform assured its users that an investigation is underway and that both Indian Rupee and cryptocurrency withdrawals will be temporarily halted to safeguard assets.
WazirX, known as one of the largest cryptocurrency trading platforms in India, has faced previous controversies over its ownership structure. Last year, conflicting reports emerged regarding Binance’s acquisition of the exchange, with founder Nischal Shetty claiming it had been acquired while Binance’s former CEO, Changpeng Zhao, denied these allegations.
Cyvers Alert has raised suspicions of a potential link to North Korea-backed hacker group Lazarus in connection to the recent attack. CEO Deddy Lavid mentioned that the use of TornadoCash in funding the transactions mirrors tactics used in previous high-profile hacks, though it’s too early to definitively attribute the incident to Lazarus Group. The group has gained notoriety for targeting the cryptocurrency industry, with estimates suggesting over $3 billion has been stolen by North Korean hackers in the last five years.
The security breach at WazirX serves as a stark reminder of the constant threats faced by cryptocurrency exchanges and the importance of robust security measures in safeguarding user funds. As investigations continue and the exchange works to enhance its security protocols, users are advised to remain vigilant and take necessary precautions to protect their assets in the volatile crypto market.
