Major Indian crypto exchange WazirX reportedly experienced a significant security breach on Thursday (18 July, 2024), resulting in over $230 million in withdrawals. Following the incident, WazirX temporarily suspended withdrawals of Indian rupee (INR) and cryptocurrencies to protect user funds.
The breach was first notified by security firm Cyvers Alert in a social media post on X, which identified a suspicious address that withdrew approximately $234.9 million worth of crypto assets from WazirX’s multisig wallet. These assets were then transferred to a new address and converted into Ethereum (ETH).
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WazirX responded by admitting the breach and identifying the multisig wallet’s provider as Liminal, a crypto custody firm. Also, their team has discovered two more exploited smart contracts.
“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,” said WazirX on social media platform X.
In a statement, Liminal said, “Our preliminary investigations show that one of the self-custody multi-sig smart contract wallets created outside of the Liminal ecosystem has been compromised. We can confirm that Liminal’s platform is not breached and Liminal’s infrastructure, wallets and assets continue to remain safe.”
“Adhering to our rigorous security protocols, the Liminal team is also readily assisting the WazirX team as they carry out their investigation,” it added.
According to Lookonchain, the largest loss was more than $100 million worth of Shiba Inu (SHIB) tokens. This was followed by $52 million in Ether (ETH), $11 million in Matic’s MATIC, and $6 million in Pepe (PEPE). The exploiter has been actively selling the stolen assets on the on-chain exchange Uniswap. Their ETH holdings remain unsold, and they currently possess over $4.2 million in FLOKI tokens.
Also Read: Ahead of India re-entry, Binance fined Rs 18.82 Crore by Financial Intelligence Unit
WazirX is a well-liked platform among Indian traders and is one of the few exchanges in the country registered with the Financial Intelligence Unit (FIU), allowing it to offer crypto exchange services to Indian citizens.
Despite the breach, CoinGecko data shows that WazirX facilitated at least $2.2 million in trading volume over the past 24 hours, with most transactions involving tether (USDT) stablecoins and XRP.
As the investigation continues, WazirX aims to restore normal operations and assure users of the security of their funds.
Disclaimer: Investing in cryptocurrencies or crypto tokens are extremely risky. The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision.
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