Recently, a blockchain security firm called Cyvers Alert made a shocking revelation about the Indian exchange WazirX. According to the report, WazirX was exploited for approximately $235 million in a series of suspicious transactions involving their Safe Multisig wallet on the ETH network. The total amount of $234.9 million was transferred to a new address, with each transaction being funded by Tornado Cash.
The stolen assets included a staggering amount of various cryptocurrencies such as 5.43 trillion SHIB tokens valued at $102 million, 15,298 ETH worth $52.5 million, 20.5 million MATIC worth $11.24 million, 640.27 billion $PEPE worth $7.6 million, 5.79 million USDT, and 135 million GALA worth $3.5 million. It was reported that the attacker was selling and converting these assets to Ethereum.
Following the security breach, WazirX released a statement confirming the incident and assuring their users that their team is actively investigating the matter. As a precautionary measure, they temporarily paused both INR and crypto withdrawals to ensure the safety of their users’ assets.
Cyvers Alert suggested that the North Korea-backed hacker group Lazarus could be involved in the attack on WazirX. The Co-founder & CEO of Cyvers Alert, Deddy Lavid, pointed out the use of TornadoCash in funding the transactions, which resembled methods used in previous high-profile attacks. While it is still early to definitively link the incident to the Lazarus Group, the similarities are indeed concerning.
This incident serves as a stark reminder of the importance of robust security measures in the blockchain and cryptocurrency space. The vulnerability exposed in WazirX highlights the constant threat of cyber attacks faced by platforms dealing with digital assets. It underscores the need for continuous vigilance and proactive steps to safeguard user funds and maintain trust in the industry.
The WazirX hack underscores the critical need for heightened security protocols in the blockchain and cryptocurrency sector. It serves as a wake-up call for exchanges and platforms to reinforce their security systems and stay ahead of malicious actors seeking to exploit vulnerabilities for financial gain. As the crypto industry continues to evolve and grow, security must remain a top priority to protect both investors and the integrity of the ecosystem.