WazirX: $230 Million Hack and Trading Halt
WazirX, one of India's largest cryptocurrency exchanges, has suspended all trading activities after suffering a major security breach that resulted in the loss of $230 million. This represents nearly half of the exchange's reserves.
The attack compromised a multi-signature wallet, where the exchange stored crypto assets worth hundreds of millions of dollars. The wallet was protected by six signatories, five of whom were from WazirX's team. The company claims the attack stemmed from a discrepancy between data displayed on Liminal's interface and the actual transaction contents.
WazirX has offered a $23 million bounty for information that helps recover the stolen assets. Analysis by risk-management platform Elliptic suggests that the attacker might have links to North Korea.
CoinSwitch and CoinDCX, Indian exchanges that partner with WazirX, have assured their customers that they were not impacted by the attack. However, this event raises serious concerns about WazirX's reserve adequacy and its ability to fully reimburse customers.
This incident highlights the vulnerability of crypto exchanges to cyberattacks and the importance of robust security measures.
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