Bitcoin’s trading pairs with the Indian rupee have plummeted following a massive hack on WazirX, where $100 million worth of SHIB was stolen, causing the memecoin’s value to drop significantly.
Cryptocurrency hacks are unfortunately common occurrences in the industry, with cybercriminals exploiting security vulnerabilities to steal millions of dollars. However, large-scale hacks on centralized exchanges like WazirX, involving hundreds of millions of dollars, have become less frequent in recent years, making the recent breach particularly alarming.
WazirX, India’s largest crypto platform, lost a staggering $235 million in the hack, about half of the total funds held by the exchange. Following the security breach, WazirX temporarily paused withdrawals to ensure the safety of assets, leaving customers concerned about the security of their funds.
One unexpected outcome of the hack was the theft of a significant amount of Shiba Inu and Ethereum, with approximately $100 million worth of SHIB being aggressively sold on Uniswap. While SHIB experienced a substantial decrease in value, Ethereum, being a more established cryptocurrency, was better equipped to handle the selling pressure.
The hack also had a ripple effect on trading pairs connecting major cryptocurrencies with the Indian rupee, with Bitcoin witnessing a sharp decline in value on the WazirX exchange. The incident has prompted investigations into the attack, with security experts suggesting that it was a meticulously planned operation executed by sophisticated hackers.
The aftermath of the WazirX hack may lead to stricter regulations on cryptocurrencies in India, where the government has already imposed a 30% tax on crypto transactions. The incident has fueled concerns about the potential impact of digital assets on financial stability, prompting calls for tighter regulatory measures.
As customers demand answers and express frustration over the handling of the hack by WazirX, rival exchanges in India are capitalizing on the situation to assure their clients of the safety of their funds. The repercussions of the breach are expected to be far-reaching, potentially reshaping the regulatory landscape for cryptocurrencies in India.