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Indian bitcoin exchange WazirX was hacked for $234.9 million

Forklog / 18.07.2024 / 08:57
Indian bitcoin exchange WazirX was hacked for $234.9 million

On July 18, the Cyvers Alerts service reported the hacking of the Indian cryptocurrency exchange WazirX.

🚨ALERT🚨Hey @WazirXIndia, Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH network.

A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash.

The suspicious… pic.twitter.com/4sajAwd4Hb

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) July 18, 2024

Experts have discovered a series of suspicious transactions from the platform's multisig wallet on the Ethereum network, as a result of which assets worth $234.9 million were moved to a new address. 

Cyvers Alerts tracked that the attacker had already exchanged PEPE, GALA and USDT for ETH. In addition, more than $100 million in Shiba Inu (SHIB) tokens, 15,290 ETH ($52 million) and 20 million MATIC ($11 million) were stolen.

The exchange acknowledged the incident, suspended all conclusions and launched an investigation into the situation. 

📢 Update: 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.…

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024

"We know that one of our multi-signature wallets has been hacked. Our team is actively investigating the incident. To ensure the security of your assets, INR and cryptocurrency withdrawals have been temporarily suspended," WazirX said.

Representatives of Blocksec, a security firm specializing in security, said in a comment to The Block that the leak of a private key was the cause of the incident. With its help, the attacker updated the implementation of the secure wallet to a malicious contract. 

Anyone can help connect @WazirXIndia, something suspicious happened.https://t.co/YWyRDvoW1C pic.twitter.com/OPUzapmbQa

— BlockSec (@BlockSecTeam) July 18, 2024

Recall that in early 2022, WazirX was accused of tax evasion in the amount of more than $ 6 million.

In August of the same year, the Law Enforcement Department of the Ministry of Finance of India suspected the platform of laundering $350 million. According to media reports, the regulator froze the assets of the exchange for $8.16 million as part of the case. The company later regained access to the accounts due to her cooperation with the investigation.

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