Crypto exchange WazirX hit by cyber attack, $230 Mn stolen

A cyberattack on one of the Crypto exchange platforms WazirX 's multisig wallets happened on July 18, 2024, and more than $230 million worth of digital assets were?stolen. Liminal's digital asset custody and wallet technology was used to operate this wallet. Their capacity to maintain 1:1 collaterals with assets has been severely hampered by the attack.

In response to this incident, WazirX has taken the following immediate and comprehensive actions:

• Immediate response: WazirX has filed an online police complaint on the National Cyber Crime Reporting Portal and is processing a physical complaint. They have also reported the incident to the Financial Intelligence Unit (FIU) India and CERT-In
• Exchange notification: WazirX in a statement said they have proactively reached out to 500+ exchanges to block the identified addresses. Many exchanges are cooperating with WazirX, and they are actively working with them to aid our recovery efforts.
• Audit procedures: Engaging with cybersecurity experts to assist in investigation and recovery efforts.
• Bounty program: Launched a bounty program to recover the stolen assets. Rewards of up to $10,000 worth of USDT will be given for actionable intelligence that leads to the freezing and recovery of the stolen funds. They are offering 10%, i.e., up to $23 Million, as White Hat Bounty.
• Suspension of deposits/withdrawals: To ensure the safety of your assets, we have temporarily paused INR and crypto deposits/withdrawals.
• Suspension of trading: The Platform has decided to pause all trading activities. This pause will allow them to examine the affected systems, and forensic data, and conduct a thorough security audit.

WazirX Clarifies Attack Details, Launches Bounty

WazirX has launched a bounty program to recover over $230 million in assets stolen in a recent cyberattack on one of its multisig wallets, the exchange announced Sunday.

Nischal Shetty , co-founder of WazirX, emphasized the community’s role in recovering stolen assets, announcing on social media platform X: “We’ve launched a bounty program today to help track, freeze, and recover the stolen assets. We will need your help in spreading it across internationally.” Initially, WazirX announced an $11.5 million bounty, but in a follow-up post on X, Shetty revealed:

The total bounty has been updated to $23M.

C3iHub Incubated Start-up BlockStash conducted a detailed analysis using its crypto forensic tool

In a recent hack on WazirX, a total of $250 million (?2000 Crore) was transferred to the exploiter’s wallet. Below is a detailed analysis of the money trail, as examined through the crypto forensics tool, of BlockStash.

What are your thoughts about Wazirx's efforts to recover the stolen assets? Let us know in the comments section below.