Hackers Steal $230 Million From Cryptocurrency Exchange WazirX

Hackers allegedly stole over $230 million in customer holdings, or about half of the platform's reserves, from WazirX, one of the country's main cryptocurrency enterprises. This was one of the worst hacks on an Indian exchange. This event demonstrates the difficulty in securing Bitcoin exchanges and their subsequent heightened vulnerability to hacking attempts on a global scale.

A "force majeure event" that was "beyond its control" was what WazirX referred to as the security breach. A number of deposits have been stopped and the affected wallets have been contacted to facilitate recovery. The business said in a statement that it is in communication with top-tier resources that can assist with the undertaking.

“Our preliminary investigations show that one of the self-custody multi-sig smart contract wallets created outside of the Liminal ecosystem has been compromised. We can confirm that Liminal’s platform is not breached and Liminal’s infrastructure, wallets and assets continue to remain safe,” the company stated in its official statement.

Comprehensive Action Taken by the Company

• Police are currently reviewing a physical complaint and the online report submitted through the National Cyber Crime Reporting Portal. Along with CERT-In and the Financial Intelligence Unit (FIU) India, the company has reported the incident.
• The listed addresses were blocked after proactive outreach to 500+ exchanges. In order to aid in its recovery efforts, the company is actively collaborating with the many exchanges that are cooperating with it.
• Recruiting a team of cybersecurity professionals to aid in the company's probe and restoration operations.
• Set up a bounty program to get back the stolen property. If anyone has information that can help freeze and retrieve the stolen cash, then that person could win up to $10,000. A White Hat Bounty of up to $23 million, or 10%, is what the company is proposing.
• It has temporarily disabled the ability to deposit or withdraw INR or cryptocurrency to guarantee the security of your valuables.
• The company has chosen to halt all trading operations, despite its earlier warning about partial collateralization of assets. The company will thoroughly inspect the security measures in place, review the impacted systems and forensic data, and then resume normal operations.

Next Step to Keep Its Customers Updated With Recent Developments

• The complete impact and recovery methods will be understood and determined by the company's analysis of all forensic evidence in collaboration with experts.
• WazirX is making great strides to facilitate the withdrawal of funds. It values its clients' understanding while it navigates this intricate issue, as processes such as security audits and forensic analysis take time.
• As the project develops, the company will keep its clients aware of its status through frequent updates.

Why has ED Issued a showcause notice to WazirX?

Ed has issued a showcause notice to largest crypto exchange WazirX but Why did it receive a notice and What is WazirX’s response to it? lets find out.

StartupTalkyAlan Joseph