**News Flash: WazirX Hit by $235M Hack, Shakes Indian Crypto Sector**
On July 18, Indian cryptocurrency exchange WazirX suffered a massive $235 million hack, raising serious concerns about exchange security and the future of crypto in India. The attack was detected by Web3 security firm Cyvers, which noticed suspicious transactions involving WazirX’s “Safe Multisig” wallet on Ethereum.
- **Details of the Hack**:
- The attacker moved $234.9 million worth of funds to a new address.
- Stolen assets included Tether (USDT), Pepe (PEPE), and Gala (GALA), which were converted to Ether (ETH).
- WazirX’s wallet also held $100 million in Shiba Inu (SHIB) and $52 million in ETH.
- **Immediate Response**:
- WazirX suspended withdrawals of cryptocurrencies and Indian rupees.
- The exchange is actively investigating the incident.
- **Industry Impact**:
- The hack could have significant implications for India’s crypto sector, which has thrived despite government pressure.
- Experts predict increased investment in advanced security infrastructure by Indian exchanges.
- **Government and Regulatory Outlook**:
- India’s Finance Minister will present the Union Budget on July 23, with the crypto sector hoping for favorable tax changes.
- Current regulations include a 30% capital gains tax and a 1% tax deducted at source on crypto transactions.
- **Suspected North Korean Involvement**:
- Analysts believe North Korean hackers, possibly the Lazarus Group, may be behind the attack.
- The hack has caused significant market turbulence, including a 10% drop in SHIB prices.
WazirX is taking legal action and collaborating with over 500 exchanges to recover the stolen funds. The incident underscores the urgent need for robust security measures in the rapidly evolving crypto landscape.
