India’s leading cryptocurrency exchange, WazirX, has fallen victim to a significant security breach, resulting in the theft of over $230 million in digital assets. The incident occurred during the early European hours on Thursday, July 18, affecting one of the exchange’s wallets and leading to substantial user fund losses. WazirX, often referred to as ‘India Ka Bitcoin Exchange,’ confirmed the breach through a post on X, formerly known as Twitter.
Impact on WazirX and User Funds
WazirX primarily caters to the Indian market and is among the few exchanges in the country registered with the Financial Intelligence Unit (FIU). This registration allows it to offer crypto exchange services to Indian citizens. In response to the breach, WazirX announced, “We’re aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding. We’ll keep you posted with further updates.”
Also Read: Lazarus Group Suspected in $305 Million DMM Bitcoin Hack
Hack Details and Suspected Perpetrators
According to Coindesk, blockchain analysis firm Elliptic has linked the hack to North Korea-affiliated hackers. The attackers are reportedly selling the stolen assets using the onchain exchange Uniswap. While they have yet to liquidate their Ethereum (ETH) holdings, they possess over $4.2 million in FLOKI tokens. Initial investigations indicate that the hackers exploited a vulnerability within WazirX’s systems, enabling them to steal a large amount of cryptocurrency, including a significant portion of the Shiba Inu (SHIB) token. This theft has caused a sharp decline in the value of WazirX’s native token, WRX.
Implications for the Cryptocurrency Industry
This high-profile breach underscores the inherent risks associated with cryptocurrency trading and the urgent need for robust security measures within the industry. The hack comes at a time when the Indian government is closely scrutinizing the cryptocurrency sector and considering stricter regulations.
