The recent security breach at India-based centralized exchange WazirX has left the platform grappling with the loss of nearly half of its total assets, amounting to over $230 million. The exchange’s co-founder, Nischal Shetty, took to social media to inform users about the exploit and assure them that efforts are underway to restore operations.
In light of the devastating hack, WazirX is actively seeking partnerships to help expedite the process of restarting its services. Shetty mentioned reaching out to potential partners to find a resolution that would benefit the exchange’s customers. The exchange is exploring various avenues that could enable platform deposits, withdrawals, and trading once again.
The breach at WazirX compromised a multisig wallet, resulting in the loss of more than 200 different cryptocurrencies, including popular tokens such as SHIB, Ethereum, Matic, Pepe, USDT, and Gala. The stolen funds constitute approximately 50% of WazirX’s total holdings, as outlined in its June proof-of-reserves report. The severity of the hack has forced the exchange to temporarily suspend trading due to challenges in maintaining adequate collateral reserves.
Despite the setback, Shetty emphasized ongoing efforts to devise solutions that would benefit affected customers. He acknowledged the urgency of the situation and expressed a commitment to working with law enforcement to identify the perpetrators and recover the stolen funds. Shetty also reassured users that the firm’s fiat INR funds remained unaffected by the breach.
In a bid to incentivize the hackers to return the stolen funds, WazirX has launched a $23 million bounty program. However, market observers are skeptical about the success of this initiative, citing the alleged ties between the attackers and North Korea’s Lazarus Group. The exchange continues to deny that the hack originated from its product infrastructure, attributing it to compromised devices owned by WazirX.
Following the breach, WazirX and its third-party custody provider, Liminal, have been embroiled in a dispute regarding the source of the exploit. While WazirX refuted claims about compromised wallet hardware, Liminal asserted that its infrastructure remained secure and pointed to compromised devices within WazirX’s possession. Shetty clarified that the hack did not involve a phishing link and involved the use of three WazirX signatures from distinct locations and devices.
As WazirX works tirelessly to address the aftermath of the hack and restore operations, the exchange is faced with significant challenges. The partnership ventures and bounty program signify its commitment to recovering the stolen assets and regaining user trust. Despite the hurdles ahead, WazirX remains resolute in its determination to emerge stronger from this crisis.
