The journey of WazirX, India’s top crypto exchange, took a dramatic turn on July 18, 2024, as hackers breached its multi-signature wallet, stealing around $235 million—nearly 45% of the platform’s reserves.
Cyvers Alerts initially detected the intrusion, where the attackers exploited WazirX’s wallet, which required four out of six signatures to authorize transactions. This included three signatures from WazirX and one from custodian Liminal.
In the lead-up to the hack, the attackers reportedly funded their wallets through TornadoCash. Following the breach, WazirX quickly launched an internal investigation, collaborating with cybersecurity experts such as ZeroShadow.io and Mandiant to locate potential vulnerabilities. Law enforcement agencies, including India’s Financial Intelligence Unit (FIU), were also alerted. An official complaint was filed, while WazirX began communicating with its community, proposing partial asset recovery plans.
By September, WazirX had managed to trace some of the stolen funds, though a substantial portion remains lost. WazirX has taken significant steps, including partnering with blockchain firms to trace assets and exploring legal channels to track down the stolen funds. As of mid-October, efforts continue, but with only partial funds recovered, affected users face uncertainty over their assets.
🚨WazirX Hack – A short history from #India's No. 1 Exchange to its most controversial.🚨
As many of you know, on July 18, Cyvers Alerts detected that the Hackers breached the security of the platform's multi-signature wallet, stealing approximately $235 million worth of digital… https://t.co/egLcmhaYYb
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) October 29, 2024
The hack has reignited discussions in India about crypto security and regulation, particularly around Virtual Asset Service Providers (VASPs). Calls for standardized security protocols and regulations are growing, especially after WazirX revealed it holds 55% of users’ assets in a cold wallet. As the exchange undergoes restructuring and legal challenges, including disputes with Binance over acquisition claims, the outcome remains uncertain.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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