India’s leading exchange WazirX has responded to its recent breach by launching a bounty program, aimed at freezing and recovering stolen assets. This move comes amid heightened security concerns and underscores the exchange’s commitment to safeguarding its users’ funds.
Nischal Shetty, co-founder of WazirX, posted on X that his exchange is reaching out to over 500 other exchanges to block the addresses associated with the stolen funds. This widespread cooperation is essential as the stolen assets move through various platforms, and the assistance of these exchanges.
Moreover, Shetty stated that WazirX is preparing a bounty program to incentivize individuals and entities to aid in freezing or recovering the stolen assets. This initiative is part of the exchange’s broader strategy to trace and retrieve the stolen funds effectively.
The team is in discussions with several expert groups specializing in tracking cryptocurrency transactions. These experts will provide continuous monitoring and support during the recovery process.
The WazirX Breach
The recent cyberattack on WazirX resulted in a loss of $235 million. According to crypto investigator ZachXBT, the main attacker’s wallet still holds over $104 million in funds that have yet to be offloaded.
WazirX detailed its immediate actions following the cyberattack in a post on X. It has filed a police complaint and reported the incident to both the Financial Intelligence Unit (FIU) and CERT-In.
“This is an unprecedented attack on one of the largest crypto exchanges in India. It has negatively affected the entire Web3 ecosystem. I’m thankful to everyone from the ecosystem who are lending us their support to help resolve it,” Shetty states.
Investigation
The team is currently analyzing data to understand the extent of the damage caused by the attack, which is crucial for formulating an effective recovery plan and ensuring all possible measures are taken to address the impact on customer funds.
In addition to internal efforts, WazirX is collaborating with forensic experts and law enforcement agencies to identify and apprehend the perpetrators. This collaboration aims to bring the culprits to justice and recover as much of the stolen assets as possible.
Warnings and Phishing Scams
Sumit Gupta, CEO of CoinDCX exchange, recently warned that multiple malicious actors are targeting the broader crypto ecosystem after the recent WazirX hack. They are now attempting to defraud unsuspecting asset owners through phishing scams.
Gupta explains that these actors send fake emails, supposedly from WazirX, and promise compensation to the victims. These deceptive tactics aim to trick Indians into disclosing sensitive information or transferring funds to the attackers.
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