WazirX Hacked: $230 Million in Crypto Stolen

WazirX, India’s top cryptocurrency exchange, was hacked on Wednesday night, leading to the theft of around $230 million. Blockchain security firm Cyvers detected suspicious transactions involving WazirX’s Safe Multisig wallet, with funds moved to a new address through Tornado Cash, a decentralized protocol for private transactions. The stolen assets included large amounts of Shiba Inu (SHIB), Ether (ETH), and Polygon (MATIC).

In response to the breach, WazirX temporarily halted withdrawals of both cryptocurrencies and Indian rupees, stating they are actively investigating the incident. Despite repeated requests for comments, the exchange has been unable to provide detailed information on the safety of user funds or recovery plans. However, they assured users that every effort is being made to locate and recover the stolen funds, including blocking some deposits and reaching out to relevant wallets.

The hack has had a noticeable impact on the market values of the affected cryptocurrencies. WazirX’s native token, WRX, dropped by 15%, and SHIB experienced a 6% loss in USD terms and a 16% decline in rupee terms as the hacker began liquidating the coins. Other cryptocurrencies on the platform, such as BTC and USDT, saw significant price drops in their rupee-denominated pairs, reflecting panic selling by investors.

The breach has drawn comparisons to past incidents involving North Korean hacking groups, specifically the Lazarus Group, known for large-scale crypto thefts. Blockchain security firm Elliptic suggested the involvement of such groups, noting that a portion of the stolen funds has already been swapped for Ether using decentralized services.

This incident underscores the vulnerabilities in crypto platforms and the ongoing threat posed by cybercriminals. It also highlights the need for robust security measures to protect digital assets. WazirX, founded in 2017 and once reportedly acquired by Binance, remains one of India’s largest crypto exchanges, but this breach raises significant concerns about the safety and security of funds on the platform.