Indian crypto exchange WazirX has suffered a security breach in one of its multisignature wallets, resulting in the loss of over $230 million in user funds and withdrawals.
The exchange confirmed the hack in a post on X (formerly Twitter), stating that their team is actively investigating the incident.
Detailed Hack of WazirX
The hacker, identified as affiliated with North Korean hackers by blockchain surveillance company Elliptic, is actively selling the stolen tokens on the decentralized exchange Uniswap. The stolen funds include $100 million worth of shiba inu (SHIB), $52 million of ETH, $11 million of MATIC, and $6 million of PEPE.
These stolen funds represent nearly 50% of the total reserves mentioned in a June 2024 report, which estimated WazirX’s holdings at $500 million.
Reaction and Measures by WazirX
WazirX swiftly responded by temporarily suspending withdrawals in INR and cryptocurrencies to ensure the safety of remaining assets. The exchange identified the provider of the multisignature wallet as Liminal, a cryptocurrency custody company.
Multisignature wallets require two or more private keys to authenticate and confirm transactions before they are processed, enhancing fund security.
The hacker continues to sell the stolen assets on Uniswap but has yet to sell their ETH holdings and currently holds over $4.2 million in FLOKI tokens.
WazirX is popular among traders in India and primarily targets the Indian market. It is one of the few exchanges registered with the country’s Financial Intelligence Unit (FIU), enabling it to offer cryptocurrency exchange services to Indian citizens.
