WazirX, one of India's largest cryptocurrency exchanges, experienced a significant security breach, resulting in the theft of $234 million worth of user funds. The hack targeted the exchange's multisignature wallet on the Ethereum network, leading to the loss of over 200 different crypto assets, including Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), and PEPE memecoin.
Conversion to Ether
Blockchain analytics firm Lookonchain reported that the hacker has converted the majority of the stolen assets into Ether (ETH). According to their analysis, the exploiter exchanged the stolen funds for 43,800 ETH, valued at approximately $149.46 million. The hacker's wallet currently holds around 59,097 ETH, with an estimated value of $201.5 million at the time of reporting.
Additional Holdings
Beyond Ether, the hacker's wallet still contains about $15 million in various cryptocurrencies, including Dent (DENT), Chromia (CHR), Celer Network (CELR), and Frontier (FRONT) tokens. An unusual transaction was also noted, involving the deposit of 7.7 million Dent tokens (worth $7,300) to a previously unused Binance deposit address.
Response from WazirX
In response to the breach, WazirX has halted all withdrawals while investigating the security lapse. In an official statement, the exchange noted that the cyberattack was due to a discrepancy between the data displayed on Liminal’s interface and the actual contents of the transactions. This mismatch led to the unauthorized transfer of funds.
Liminal Custody, a firm associated with WazirX, clarified in an emailed statement to CryptoNews that one of the self-custody multisig smart contract wallets created outside their ecosystem had been compromised. They emphasized that Liminal's platform, infrastructure, wallets, and assets remain secure.
Investigation and Attribution
The exact method of the hack is still under investigation. Initial reports from blockchain analytics firm Elliptic suggest that the techniques used are commonly associated with hackers linked to North Korea. Elliptic's report indicates that on-chain data points to methods typically employed by North Korean hackers, who have a history of targeting cryptocurrency exchanges to fund their regime. This incident adds to a series of high-profile hacks in the cryptocurrency sector, raising ongoing concerns about the security of digital asset exchanges.
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