Tech
WazirX Suspends Trading After $230M Loss: What ‘India Ka Bitcoin Exchange’ Said About Losing Nearly Half of Its Reserves
WazirX, India’s leading provider cryptocurrency exchange, has temporarily suspended all trading following a devastating cyber attack that wiped out 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 around $230 million in cryptocurrency.
The breach exploited a vulnerability in the exchange’s multi-signature wallet system, compromising the security of deposited funds. To mitigate further losses and ensure the protection of remaining assets, WazirX has temporarily suspended customer withdrawals.
“Trading has been temporarily suspended. The theft from the cyber attack has impacted our ability to maintain 1:1 collateral with assets and we have temporarily suspended trading. We are conducting a thorough data forensics review and security audit procedures and are working to enable withdrawals soon. User safety remains our top priority. Thank you for your patience and support during this difficult time. We will continue to provide regular updates,” the post reads.
The Biggest Cryptocurrency Hack in Recent Times
By Cyvers’ estimate, the amount lost from the multi-signature wallet on WazirX would represent 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 safeguard user funds. Some are also questioning WazirX’s claim to maintain a 1:1 collateral ratio with assets, sparking fears among investors about potential losses.
Hackers May Have Ties to North Korea
In an effort to recover the stolen funds, WazirX has launched a reward program offering up to $23 million for information leading to the arrest of the perpetrators and the return of the stolen assets. Preliminary investigations by risk management firm Elliptic suggest the hackers may have ties to North Korea.
Elliptic said in a blog post that hackers affiliated with North Korea appeared to have carried out the hack. “The attribution to North Korea is based on similarities in the types of services these hackers have used in the past, as well as similarities in their transactional behavior,” Tom Robinson, co-founder of Elliptic, said in an email.