Indian cryptocurrency exchange WazirX has experienced a security breach resulting in the suspicious transfer of nearly $235 million. The exchange acknowledged the breach on X (formerly Twitter) indicating that one of their multisig wallets was hacked. WazirX is investigating the issue and has suspended all crypto and rupee deposits and withdrawals.
WazirX did not specify the exact amount of cryptocurrency affected, but an earlier tweet from blockchain security firm Cyvers reported that $234.9 million had been moved to a new address. This address, funded by the coin mixer Tornado Cash, saw assets like PEPE, GALA, and USDT swapped to Ethereum (ETH), according to Cyvers.
Also Read: Mt. Gox Accounts Targeted Amid Unauthorized Login Attempts
Detailed Investigation Underway
The exchange felt it was important to notify the users that it was actively trying to fix the problem and improve security. This is massively concerning for WazirX as the large amounts and effects on the company’s reputation are dire. The use of Tornado Cash, which maintains the transactions’ anonymity, complicates the effort to highlight the stolen assets’ trail.
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This is not the first time a hack has been reported among cryptocurrency companies, indicating a concerning trend in the sector. Large-scale exchange hacks have become more rampant, which leaves a lot of doubt regarding the measures taken to ensure virtual currency security. The WazirX hack shows that even highly technical exchanges and companies might not have impregnable security and that constant vigilance is needed to avoid such attacks.
Breaking: Wazirx, Indian Crypto Exhcnage Reportedly Hacked For More Than $230 Million. This comes shortly after Mt. Gox creditors complained about a potential security breach on their accounts. What is happening?#cryptonewstoday #Bitcoin #ThursdayThoughts pic.twitter.com/9o0SqfNr5T
— 36crypto – Crypto News (@36Crypto2) July 18, 2024
The decision made by the exchange to stop withdrawals is to prevent the users from losing more money in the future. However, this has caused some inconveniences and concerns to the users who use WazirX to trade in their investments. The exchange asked for calm and encouraged users to remain patient as they stabilized and investigated the matter.
The Bitcoin community has expressed a combination of fear and displeasure, and many customers are requesting greater transparency and responsibility from exchanges to safeguard their assets. This hack shows the industry’s persistent issues in ensuring user security and trust.
Finally, the WazirX security breach involving roughly $235 million serves as a sobering reminder of the cryptocurrency sector’s vulnerabilities. As the exchange tries to address the issue and prevent similar accidents, the rest of the industry must also pay attention and strengthen its security measures to protect digital assets. Both users and industry experts will closely monitor the findings of WazirX since they might have far-reaching ramifications for the future of cryptocurrency exchange security.
Also Read: Michael Saylor Declares Bitcoin the Top Asset, Citing Superior Performance and Value Storage
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.