WazirX Hack: $230 Million Stolen in Major Crypto Exchange Breach

On July 18, 2024, WazirX, one of India’s biggest crypto exchanges, faced a major setback. Hackers broke into the exchange and stole over $230 million worth of cryptocurrencies. This event sent shockwaves through the crypto world and raised serious questions about the safety of digital assets.

The attack targeted WazirX’s multisig wallet on the Ethereum network. A multisig wallet needs more than one person to approve transactions, which usually makes it safer. But in this case, it seems the hackers got hold of a private key. This allowed them to change the wallet’s code and take the money.

Over 200 different types of crypto were stolen. The biggest losses were in Shiba Inu (about $97 million), Polygon’s MATIC (around $11 million), and the meme coin Pepe (about $7.6 million). The thieves also took millions in other popular coins like Ethereum and Tether.

How Did WazirX Respond?

As soon as WazirX found out about the hack, they stopped all withdrawals. They called it a “force majeure event,” which means something that was out of their control. The exchange said they’re looking into what happened and trying to keep users’ money safe.

At WazirX, our commitment to transparency and community welfare is paramount. There was a cyber attack on one of our multisig wallets. Below are the preliminary findings to clarify the situation:

» Incident Overview: A cyber attack occurred in one of our multisig wallets…

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024

The price of WazirX’s own token, WRX, dropped by 16% after the news broke. This shows how hacks can quickly affect an exchange’s reputation and value.

What happened next was just as interesting. The hackers didn’t sit on their stolen goods. They quickly started to swap most of the stolen crypto for Ethereum. By July 19, they had changed about $149 million worth into Ethereum. This is a common move for crypto thieves, as it can make the money harder to track.

The #WazirX exploiter has exchanged most of the assets for 43,800 $ETH($149.46M) and currently holds 59,097 $ETH($201.67M).

Currently, there are ~$15M assets left. Including:
1.66B $DENT ($1.56M)
6.76M $CHR ($1.72M)
78.6M $CELR ($1.12M)
958,428 $FRONT ($909K)
…

It is worth… pic.twitter.com/MX9uvt3BpV

— Lookonchain (@lookonchain) July 19, 2024

Who’s Behind the Hack?

But who was behind this big theft?

Elliptic, a company that studies blockchain data, thinks it might have been hackers working for North Korea. They’ve been known to target crypto exchanges before. Elliptic said the way the hackers moved and swapped the stolen money matches how North Korean hackers usually work.

What This Means for Crypto

This hack is one of the biggest in crypto history. It shows that even big exchanges can be vulnerable. It’s a reminder for crypto users to be extra careful with their digital money. Many experts say it’s safest to keep large amounts of crypto in personal wallets, not on exchanges.

For WazirX, rebuilding trust will be a big challenge. They’ll need to explain how the hack happened and show they’ve fixed the problem. This event might also lead to calls for stricter rules for crypto exchanges in India and around the world.