The Indian crypto exchange WazirX experienced a significant security breach, resulting in $230 million in suspicious withdrawals. The breach primarily involved $100 million in SHIB tokens. The attack forced WazirX to halt withdrawals and trading activities. The compromised wallet was a multisig wallet, requiring multiple signatories for transactions. The breach has raised concerns about the security of crypto exchanges in India and the adequacy of their reserves.
The cyberattack, which occurred on July 18, 2024, was described by WazirX as a “force majeure event”. The attackers exploited a discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents. This allowed them to gain control of the wallet and transfer the funds. The stolen assets included over 5.43 billion SHIB tokens, 15,200 Ethereum tokens, 20.5 million Matic tokens, 640 billion Pepe tokens, 5.79 million USDT, and 135 million Gala tokens. Blockchain data suggests the attackers are trying to offload the assets using the decentralized exchange Uniswap.
The breach has significant implications for WazirX, which reported holdings of about $500 million in its June proof-of-reserves disclosure. The incident has also raised concerns about the security of other Indian crypto exchanges, with CoinSwitch and CoinDCX assuring their customers that their funds are secure and unaffected by the attack. The attackers are believed to have affiliations with North Korea. WazirX has announced a bounty program of up to $23 million to recover the stolen assets.
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Image Credits : Shaurya Malwa