WazirX, India’s largest crypto exchange, has suspended withdrawals following a significant hacking attack resulting in a reported loss of $230 million. The Mumbai-based exchange confirmed the breach on X (formerly Twitter), attributing the incident to North Korea-linked hackers. The attack exploited a discrepancy in Liminal’s interface, leading to the theft of various cryptocurrencies, including Ethereum, SHIB, and USDT.

Details of the Incident

WazirX referred to the hack as a “force majeure event,” indicating it was beyond their control. The stolen assets represent nearly half of WazirX’s reported $500 million reserves. The exchange is actively working to recover the funds and has already blocked some deposits and contacted relevant wallets for assistance.

 

Stolen Assets

Lookchain, a blockchain explorer, reported that over 200 types of cryptocurrencies were stolen. The stolen assets include:

  • 5.43 billion SHIB tokens
  • 15,200 Ethereum tokens
  • 20.5 million Matic tokens
  • 640 billion Pepe tokens
  • 5.79 million USDT
  • 135 million Gala tokens

 

Competitor Reactions

Competitors like CoinSwitch and CoinDCX have reassured their customers about the security of their funds. CoinDCX’s CEO, Sumit Gupta, emphasized their robust wallet security, while CoinSwitch’s CEO, Ashish Singhal, advised investors to be cautious of market volatility following the hack.

 

Investigations and Impact

Investigations suggest that a private key leak, leading to the compromise of a multi-signature wallet, was the cause of the breach. Blockchain sleuth Elliptic has linked the attack to North Korea-associated hackers.

Historical Context: WazirX and Binance

WazirX’s hacking incident comes after its separation from global crypto exchange Binance in early 2023. The two companies had a public fallout in 2022, culminating in Binance terminating its business relations with WazirX.

 

Moving Forward

WazirX is collaborating with cybersecurity experts to trace and recover the stolen funds. The exchange’s immediate focus is on securing its platform to prevent future incidents and restore investor confidence.

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