Major Security Breach Hits WazirX: Millions in Crypto Stolen
Web3 security firm Cyvers has uncovered a significant security breach at Indian cryptocurrency exchange WazirX. The firm detected “multiple suspicious transactions” involving WazirX’s Safe Multisig wallet on the Ethereum blockchain.
According to reports, approximately $234.9 million worth of cryptocurrency has been transferred from WazirX’s secure multisignature wallet to a new address. Each transaction appears to have originated from an account funded with Tornado Cash, a decentralized protocol known for facilitating private transactions. This raises concerns about the stolen funds’ traceability.
Cryptocurrency sleuth ZachXBT, known for his investigative work, suggests that the attacker still holds over $104 million in stolen crypto assets. This remaining amount primarily consists of Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), and a variety of other tokens.
WazirX Responds and Suspends Withdrawals
In response to the security breach, WazirX has taken immediate action by halting all cryptocurrency and Indian Rupee (INR) withdrawals on its platform. Through an official X post, the exchange acknowledged the incident and stated that they are actively investigating it. They have promised to provide updates as the situation develops. Cointelegraph attempted to contact WazirX for further details regarding user fund safety and recovery measures, however, the exchange did not respond at the time of publication.
This security breach raises concerns about the overall security landscape for crypto exchanges in India. It coincides with a period of regulatory uncertainty within the Indian crypto market. In March 2024, the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued compliance notices to several foreign crypto exchanges, forcing them to restrict services to Indian users.
The Indian government has been engaged in discussions about crypto regulation for nearly four years, but a definitive regulatory framework has yet to be established. This lack of clarity and potential for restrictions may create challenges for legitimate cryptocurrency businesses operating in India.
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Author: Michael
This post was originally published on cryptonewsfarm.com
