A recent security breach at WazirX, resulting in a
staggering $230 million loss, has sent shockwaves through India’s
cryptocurrency ecosystem. This incident has led to intense scrutiny of current
security practices and crucial discussions about
safeguarding digital assets in an increasingly risky environment. Users are concerned about the ease with which fraudsters can manipulate exchanges.
The incident ranks among the major hacks in the history of crypto exchanges and has left the crypto community pondering how easily fraudsters can manipulate crypto exchanges. One X user named Chandrashekhar wondered how “hackers can withdraw funds from the exchange, but legitimate exchange users cannot withdraw their own tokens or hold them in self-custody.”
The irony with Indian 🇮🇳 exchanges is that hackers can withdraw funds from the exchange, but legitimate exchange users cannot withdraw their own tokens or hold in self custody. WTH. @CoinDCX @WazirXIndia @WazirXCares @CoinSwitch #BTC #WazirXhacked #Wazirx @cryptoamanclub pic.twitter.com/PwFGNBN8cG
— Chandrashekhar B (@shekharbhujbal8) July 19, 2024
Another X user has termed the situation “horrifying” after WizirX circulated an email to users about the security incident. Vivek Naskar lamented: “Received this horrifying mail from WazirX.
So whatever minuscule (and negligible) crypto investment I had, that is also gone (or frozen)!
Today is the day of tragedies.”
Cyvers Alert identified the suspicious transactions,
noting that each transaction’s caller received funds from Tornado Cash. Crypto
investigator ZachXBT recently reported on his Telegram channel “Investigations by
ZachXBT” that the suspected primary attacker still holds over $104
million.
“The WazirX incident highlights the importance of having comprehensive security measures for exchanges. The best way to ensure a full-proof safety net is by having a prominent monitoring and detection service, along with a proper crisis response protocol,” Meir Dolev, the Co-founder and CTO at Cyvers, told Finance Magnates.
After the WazirX multi-signature wallet breach, we immediately addressed the suspicious transactions with the team and are still investigating the incident with them.
This incident underscores the need for robust multi-signature wallet security and vigilant monitoring.
— Cyvers | Proactive Web3 Security (@Cyvers_) July 22, 2024
WazirX has launched a $23
million bounty program to recover over $230 million in digital assets lost
during the cyber…
