In a statement on Friday, WazirX exchange announced that it is taking further legal action in response to a recent cyberattack that resulted in losses of over $230 million. WazirX’s immediate actions include tracing the stolen funds, recovering customer assets, and conducting an in-depth analysis of the cyberattack.

The exchange has reported the incident to the Financial Intelligence Unit of India (FIU-India) and the Indian Computer Emergency Response Team (CERT-IN) and has worked with more than 500 exchanges to block addresses associated with the attack. The WazirX team said they are actively working with many exchanges to obtain more resources to assist in their recovery efforts.

WazirX is working closely with digital forensics experts and law enforcement agencies to identify the attackers and is focusing on the recovery of funds and digital forensic analysis of the attack. On Thursday, WazirX disclosed a cyberattack on one of its multi-signature wallets that resulted in the theft of more than $230 million in funds. As a precautionary measure, WazirX has suspended all Indian rupee and cryptocurrency withdrawals.

According to WazirX, the attacker took advantage of the discrepancy between the data displayed in the wallet interface and the actual transaction details to steal funds. After the attack, the value of Shiba Inu's SHIB token fell by 8%, and the attacker's wallet had about $100 million worth of SHIB at the time. The attacker then converted some of the altcoins into Ethereum (ETH). Data from Arkham Intelligence shows that the wallet currently holds 43,800 ETH, worth about $153 million.

Blockchain analysis company Elliptic pointed out that the cyber attack on WazirX may be related to North Korean hackers. This incident highlights the challenges faced by cryptocurrency exchanges in security protection and also reminds regulators to strengthen supervision and guidance on this emerging field.

A wake-up call for cryptocurrency regulation in India

The WazirX hack not only exposed the exchange’s security vulnerabilities, but also highlighted the shortcomings of India’s cryptocurrency regulation. Joanna Cheng, deputy general counsel at Fireblocks, noted that the incident highlighted the need for clear guidelines on security standards, risk management, and consumer protection.

Cheng stressed that although India does not yet have specific regulations for cryptocurrencies, the development of the cryptocurrency industry urgently needs a clear regulatory framework. She believes that such regulation will not only set behavioral standards for exchanges, but also ensure that they are responsible to their customers. "Regulatory intervention will hold exchanges accountable for their actions or inactions, which is crucial to protecting consumers," she said in an interview with the media.

Cheng also questioned WazirX’s characterization of the hack as a “force majeure event.” She noted that the applicability of a force majeure clause depends on whether the event was truly unexpected and unavoidable. If WazirX could have taken steps to prevent or mitigate the attack, then the force majeure clause may not apply. “If WazirX could have reasonably prevented or mitigated the attack, then they cannot invoke the force majeure clause to absolve themselves from liability,” she added.

Cheng further pointed out that WazirX attempted to use the force majeure clause to suspend withdrawals, but if the attack was foreseeable and could have been avoided or mitigated through reasonable precautions, then the clause cannot be used as an excuse to evade liability. She concluded by adding: "This incident highlights the importance of regulatory clarity and oversight, which are essential to establish basic accountability mechanisms and protect investors."

Through this incident, both Indian regulators and the cryptocurrency industry should realize the importance of strengthening supervision and improving security standards to ensure the healthy development of the industry and the protection of consumer rights.

Conclusion:

The WazirX hack is not only a test for a single exchange, but also a warning to the entire cryptocurrency industry. It reminds us that as cryptocurrency becomes more popular and grows, more stringent security measures and regulatory systems must be established.

Only in this way can we ensure the sustainable development of the industry, protect the interests of consumers, and promote a healthy and transparent market environment.

In the meantime, regulators in India and beyond must act to develop and implement effective policies to address the evolving risks and challenges in the cryptocurrency space. #WazirX #黑客攻击 #加密货币 #网络安全