Fallout From WazirX’s $235M Exploit: Crypto Exchange Files Police Complaint

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As a seasoned researcher with extensive experience in the cryptocurrency industry, I have followed the recent developments surrounding WazirX, the India-based cryptocurrency exchange that suffered a significant cyber attack resulting in a loss of $235 million for its investors. The situation is undoubtedly concerning, and I am closely monitoring the steps taken by the exchange to mitigate the damage and recover the stolen funds.

Following a significant cyberattack on Thursday that cost its investors approximately $235 million, Indian cryptocurrency platform WazirX has swiftly responded by filing a police report and implementing measures to minimize the fallout.

WazirX Launches Legal Pursuit

WazirX recently shared on their social media platforms that they have reported a recent occurrence to the Financial Intelligence Unit (FIU) and CERT-In, which is India’s Computer Emergency Response Team. In simpler terms, they have informed these authorities about an incident that took place on their exchange.

Following the cyber assault, we’ve reported the incident to the police and are exploring further legal options. We’ll make sure to keep everyone informed of any developments.

Further reports indicate that the affected exchange has reached out to approximately 500 other cryptocurrency platforms, requesting them to prevent transactions from the implicated wallet addresses linked to the exploit. This action is estimated to have halted the transfer of SHIB, ETH, MATIC, and PEPE tokens valued at around $96 million for SHIB, $52 million for ETH, $11 million for MATIC, and $7.6 million for PEPE.

Fallout From WazirX’s $235M Exploit: Crypto Exchange Files Police Complaint

The exchange is collaborating with these exchanges to find extra resources to support their recuperation processes and help customers affected by the data breach.

WazirX’s short-term objectives involve tracking down the stolen funds, retrieving customers’ assets, and performing a comprehensive investigation into the cyber attack. To accomplish these goals, the exchange works in tandem with forensic specialists and law enforcement bodies to identify and apprehend the individuals behind the security breach.

During their continuous probe, WazirX has uncovered two more smart contracts that have been manipulated, and they are meticulously analyzing the situation.

WazirX has created a separate platform for safeguarding user funds, allowing customers to withdraw previously granted approvals. It’s important to note that your funds are still exposed unless you take this action.

Multisig Wallet Vulnerability Exposed

A report published by WazirX on Thursday revealed that one of their multisig wallets, which has utilized Liminal’s digital asset custody and wallet infrastructure since February 2023, was the victim of a cyber attack.

Six individuals, with five being from WazirX’s team and one representative from Limital, were assigned roles as signatories in the wallet setup for approving transactions. An additional security measure, a whitelist policy, was introduced.

An examination uncovered that the discrepancy leading to the security incident was rooted in a disparity between the information shown on Liminal’s platform and the true details of the transaction.

During the cyberattack, an inconsistency emerged between the data shown on the Liminal dashboard and the signed documents. There’s a strong suspicion that the attacker tampered with the payload, enabling them to seize control of the digital wallet and leverage the vulnerability.

Fallout From WazirX’s $235M Exploit: Crypto Exchange Files Police Complaint

Currently, the market capitalization is valued at $2.3 trillion after bouncing back from a July 5 low of $1.9 trillion. SHIB, which experienced a 10% dip on Thursday due to an exploit, has started to rebound, now trading at $0.000017, an increase of 3%.

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2024-07-20 15:11