WazirX Security Breach: $234 Million Stolen

Date: July 19, 2024

Summary: WazirX, one of India’s leading cryptocurrency exchanges, has reported a significant security breach, resulting in the loss of $234 million in digital assets. The breach, which occurred on July 18, 2024, involved a multisignature wallet, a type of crypto wallet that requires multiple private keys to authorize transactions.

Details:

• Incident: The security breach was identified in one of WazirX’s multisig wallets, leading to the unauthorized transfer of approximately $234 million worth of digital assets to an unknown address. This amount constitutes nearly half of WazirX’s total assets.
• Response: WazirX has temporarily paused all INR and cryptocurrency withdrawals to investigate and ensure the safety of user assets. The platform announced the breach and subsequent measures via their social media channels.
• Technical Insight: The attack exploited discrepancies between the data displayed on Liminal’s interface (a digital asset custody and wallet infrastructure provider) and the actual contents of the transactions. Despite the breach, Liminal confirmed that its platform, wallets, and assets remain secure, indicating that the compromised wallet was created outside of its ecosystem.
• Market Impact: The breach has raised concerns among investors about market volatility. Industry leaders have advised caution in trading and investment activities during this period.
• Background: WazirX has been under significant regulatory pressure over the past year. Its trading volume drastically dropped due to strict government regulations, including a 30% tax on virtual currencies introduced in 2022 and multiple investigations by the Enforcement Directorate (ED) under money laundering and foreign exchange laws.

This incident underscores the ongoing challenges and risks in the cryptocurrency space, particularly concerning security and regulatory compliance.

For more detailed information, you can read the full articles from Wzxirx Preliminary Report and Rediff. Visit our site Techbreeze IT Solutions for more insights and updates on the latest in technology.