Bitcoin
WazirX Suspends Trading After $230 Million Loss: What ‘India Ka Bitcoin Exchange’ Said About Losing Almost Half of Its Reserves
WazirX, the Indian leader cryptocurrency exchange, has temporarily suspended all trading activities following a devastating cyberattack that drained nearly half of its reserves. The exchange, which calls itself ‘India Ka Bitcoin Exchange’, revealed in a post on X (formerly Twitter) on July 21 that hackers managed to steal approximately $230 million worth of crypto assets.
The breach exploited a vulnerability in the exchange’s multi-signature wallet system, compromising the security of stored funds. To mitigate further losses and ensure the protection of remaining assets, WazirX has temporarily halted customer withdrawals.
“Trading has been temporarily paused. The cyberattack theft has impacted our ability to maintain 1:1 collateral with assets, and we have temporarily paused trading. We are conducting full data forensics and security audit procedures and working to enable withdrawals soon. User safety remains our top priority. Thank you for your patience and support during this challenging time. We will continue to provide regular updates,” the post read.
Biggest Crypto Hack Ever
Based on Cyvers’ estimate, the value lost from the WazirX multi-signature wallet would be one of the largest cryptocurrency thefts in recent years and comes just a month after Japanese cryptocurrency exchange DMM Bitcoin lost over $300 million in a hack
The incident is said to have raised concerns about the exchange’s security protocols and its ability to protect user funds. Some are also questioning WazirX’s claim to maintain a 1:1 collateralization ratio with assets, raising fears among investors about potential losses.
Hackers may have links to North Korea
In a bid to recover the stolen funds, WazirX has launched a bounty program offering up to $23 million for information leading to the arrest of the culprits and the return of the stolen assets. Preliminary investigations by risk management firm Elliptic suggest that the hackers may have ties to North Korea.
Elliptic said in a blog post that hackers affiliated with North Korea appear to have carried out the hack. “The attribution to North Korea is based on similarities in the types of services used by these hackers in the past, as well as similarities in their transactional behavior,” Tom Robinson, Elliptic’s co-founder, said in an email.