- WazirX announces a bounty program to recover stolen.
- The hacking incident resulted to the exchange losing over $230 million.
As a seasoned analyst with extensive experience in the crypto and blockchain industry, I have witnessed the rapid growth of this space but also the increasing threats it faces from cybercriminals. The recent hacking incident at WazirX, India’s largest crypto exchange, is a stark reminder of these risks.
Hacking incidents targeting cryptocurrencies are increasing at an alarming rate, with WazirX, India’s leading crypto exchange, becoming the most recent victim in the Decentralized Finance (DeFi) sector.
WazirX loses $230 million
I recently analyzed a security incident reported by WazirX two days ago. Hackers successfully breached their system and made off with approximately $230 million in digital assets. They announced this unfortunate event on their X platform, which was previously known as Twitter.
“We’ve detected a security issue with one of our multi-signature wallets. Our specialists are currently looking into the matter. In the meantime, we have suspended INR and cryptocurrency withdrawals to protect your funds.”
Last year, the wallet in question held digital assets under Laminal’s custody. The exchange accused Laminal of being responsible for the security breach. But Laminal strongly disputed these allegations, maintaining that their platform and infrastructure remained secure throughout. They emphasized that the hacked wallet was, in fact, a self-custody one, meaning the user held the private keys themselves.
WazirX announces bounty program
As a security analyst, I’ve been closely monitoring the situation at WazirX following the recent security breach. After notifying the appropriate authorities, my team and I are now focusing our efforts on implementing a bounty program to encourage responsible reporting of vulnerabilities and enhance the platform’s overall security.
As an analyst, I’ve learned that WazirX is in the process of launching a bounty program. Nischal Shetty, one of the co-founders, announced this update on the official X page.
The WazirX team is diligently moving forward with their plans, which include:
The team also collaborates with outside professionals to track the whereabouts of the stolen assets. Additionally, he pointed out that…
Regarding ongoing investigations into the tracking of illicit fund transfers, we’ve been collaborating with several alleged specialists in this field. Meanwhile, we’ve notified all relevant exchanges about the situation. Some have responded, while others are still to do so. We’re actively following up for their potential involvement in the recovery process as the stolen funds may be transferred. Additionally, we’re meticulously analyzing data to assess the scope of the damage. Furthermore, we’re making progress on additional law enforcement and regulatory measures.
Shetty further contended that the cyberattack on WazirX, being a major Indian cryptocurrency exchange, has had far-reaching consequences for the entire web3 domain.
Rising hacks in the crypto industry
In the past year, there has been a significant increase in hacking incidents. A recent report reveals that hackers managed to steal over $1.38 billion worth of data and assets by June 2024, which is more than double the $657 million taken in the same period the previous year.
The increasing number of occurrences underscores the risks inherent in the crypto world, web3, and the importance of enhancing security measures in response to these incidents.
Multiple individuals have voiced their worries about the increasing risk of hacking and its potential repercussions for Web3, blockchain, and the broader crypto community. For example, Engineer Reveals expressed concerns on X regarding this issue.
As an analyst, I can tell you that the recent security incident on Wazirx exchange could leave a deep mark if the stolen funds fail to be restored to their rightful investors. This unfortunate event is likely to prompt Indian authorities to take more stringent measures against advanced web3 and blockchain technology.
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2024-07-21 15:03