Indian Crypto Wallet Exchange Hacked, Losses Reach IDR 2.8 Trillion

Indian Crypto Wallet Exchange Hacked, Losses Reach IDR 2.8 Trillion

WazirX, a crypto exchange based in India, suffered significant losses after their wallet was hacked.

In a post on X on Thursday (July 18, 2024), Web3 security firm Cyver Alerts reported detecting several suspicious transactions involving WazirX's Safe Multisig wallet on the Ethereum network. For context, a Multisig wallet is a type of crypto wallet that requires two or more private keys to authenticate and confirm transactions before they are processed.
Each transaction conducted by the attacker was funded by the privacy mixer Tornado Cash. In total, approximately USD 234.9 million or around IDR 2.8 trillion was transferred to a new address with the domain “0x04b2”. The attacker exchanged PEPE, GALA, and USDT for ETH and continued to swap other crypto assets. As of the writing of this article, the crypto assets in the wallet primarily consist of USD 91 million in SHIB, USD 25 million in ETH, USD 7 million in MATIC, USD 3.6 million in FLOKI, as well as other altcoins worth millions of dollars, according to Debank data.

The total assets currently remain in the attacker’s wallet. Source: Debank

WazirX Halts Withdrawals

Following the hacking incident, WazirX announced in a post on X that they have temporarily suspended crypto and INR withdrawals on their platform.

"We are aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating this incident," the WazirX team wrote.

Conlusion

The recent hacking incident at WazirX highlights the vulnerabilities that even well-established crypto exchanges face in the rapidly evolving digital asset space. With approximately USD 234.9 million or IDR 2.8 trillion stolen, this breach underscores the critical need for robust security measures and constant vigilance against sophisticated cyber threats. The use of Tornado Cash to fund the transactions further complicates the tracing of the stolen assets, presenting significant challenges for recovery efforts.

In response to the breach, WazirX's decision to temporarily halt withdrawals is a necessary step to prevent further losses and secure their platform. As the investigation unfolds, it will be crucial for WazirX and other crypto exchanges to learn from this incident and enhance their security protocols. This event serves as a stark reminder to the entire cryptocurrency community about the importance of multi-layered security strategies and the ongoing battle against cybercriminals in the digital age.

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This content aims to enrich reader information. Always conduct independent research and use disposable income before investing. All buying, selling, and crypto asset investment activities are the reader's responsibility.