Key Points:

  • Major hack: A North Korean-linked hacker stole $230 million from WazirX, an Indian cryptocurrency exchange.

  • Funds converted: Most stolen assets (around $200 million) have been converted to Ethereum (ETH) by the hacker.

  • Liquidity impacted: WazirX's token prices and overall liquidity significantly dropped due to the exploit.

  • User funds affected: Prices of many tokens on WazirX are trading at a steep discount compared to other exchanges, impacting users.

  • WazirX's explanation: The exchange blames a "mismatch" between a digital interface and a crypto wallet for the exploit, despite having multiple sign-offs for the wallet.

  • Community skepticism: Many in the Indian crypto community doubt WazirX's explanation and criticize the exchange's security practices.

What Happened:

  • A hacker linked to North Korea exploited a vulnerability in WazirX, draining over $230 million in user funds.

  • The stolen assets were primarily in SHIB (Shiba Inu) and ETH tokens.

  • The exploit significantly impacted WazirX's liquidity, causing token prices to plummet.

  • Bitcoin (BTC) and SHIB trades on WazirX are down significantly compared to other Indian exchanges.

  • WazirX's own token (WRX) also dropped by 40% in value.

WazirX's Explanation and Criticism:

  • WazirX claims a technical glitch caused the exploit, blaming a mismatch between a software interface and the actual wallet.

  • This explanation has been met with skepticism from the Indian crypto community, who question the security practices of having such a large sum stored in a single wallet with multiple sign-offs.

  • Some community members believe WazirX is not being transparent and are concerned about the future of their funds.

Current Situation:

  • Crypto and fiat withdrawals from WazirX are currently suspended.

  • The impact of the hack on user funds and the exchange's reputation remains to be seen.

Additional Notes:

  • This event highlights the importance of strong security measures for cryptocurrency exchanges.

  • Users should carefully consider the risks involved before storing their funds on any exchange.