Indian crypto exchange WazirX hit by massive theft; market shaken, North Korean actors suspected
In recent news, the Indian cryptocurrency exchange WazirX has been the target of a major cyber attack, resulting in the theft of approximately $230 million. This incident has caused significant disruptions in the cryptocurrency market and raised concerns about the security of digital assets.
Details of the Hack
The hack on WazirX involved the transfer of stolen funds to the crypto mixer Tornado Cash after converting them into Ethereum (ETH) and Tether (USDT). This attack has had a ripple effect on the market, causing notable price drops in affected cryptocurrencies, including a more than ten percent drop in Shiba Inu. In response to the hack, WazirX has suspended all deposits and withdrawals while they investigate the incident.
Response and Investigation
Following the hack, WazirX has filed a police complaint and is actively engaging with India’s Computer Emergency Response Team (CERT-In). The exchange is collaborating with forensic experts and law enforcement agencies to identify and apprehend the perpetrators. The next step in their response involves filing a First Information Report (FIR) to initiate an official investigation. WazirX is also working on tracing the stolen funds and recovering customer assets.
Suspected Involvement of North Korean Actors
According to cybersecurity firm Elliptic, the hack is suspected to have been carried out by North Korea-based actors. The incident involved a multi-signature wallet sending funds to a non-whitelisted address due to a discrepancy on the Liminal platform’s interface. WazirX has suggested that the custody service provider may have failed in its duties, while Liminal has indicated that the wallet was compromised outside its ecosystem. The stolen funds include various cryptocurrencies, with a significant portion already swapped for Ethereum, which appears to be the initial step in laundering the proceeds.
Market Impact and Security Concerns
This hack follows a similar incident involving the Japanese exchange DMM Bitcoin, which suffered a $305 million hack in May. The recurring nature of these attacks highlights the ongoing security challenges faced by cryptocurrency exchanges. Investors and users of these platforms are increasingly concerned about the safety of their digital assets.
