After a significant exploit that led to the loss of almost half of its assets, India-based centralized exchange WazirX is actively seeking partnerships to restore full operations. Co-founder Nischal Shetty took to social media on July 23 to update users on the situation and shared that the exchange is diligently working on a solution to resume its services. Shetty mentioned reaching out to potential partners for a resolution that would benefit their customers and enable platform deposits, withdrawals, and trading.
WazirX recently acknowledged a security breach in one of its multisig wallets, resulting in a loss of over $230 million in user assets. The theft involved more than 200 cryptocurrencies, including a substantial amount of SHIB tokens, Ethereum tokens, Matic tokens, Pepe tokens, USDT, and Gala tokens. These stolen funds make up approximately half of WazirX’s total holdings, as indicated in their June proof-of-reserves report. Due to the impact of the hack on collateral maintenance, the exchange has temporarily suspended trading.
Despite the setback, WazirX is focused on making its customers whole and exploring various avenues to address the situation. Shetty emphasized ongoing collaboration with law enforcement to track down the perpetrators and recover the stolen funds. Additionally, the exchange has launched a $23 million bounty program to incentivize hackers to return the funds. While market observers remain skeptical about the chances of recovery, given the hackers’ alleged ties to North Korea’s Lazarus Group, WazirX is committed to pursuing all available options.
Although the hack did not impact WazirX’s fiat INR funds, questions remain about the resumption of INR withdrawals. The exchange has clarified that the breach did not originate from its product infrastructure but rather from a third-party custody provider, Liminal. However, Liminal maintains that its infrastructure was secure and points to compromised devices owned by WazirX as the source of the exploit. In response, WazirX has refuted claims about compromised hardware and emphasized that the hack was not the result of a phishing link. Shetty highlighted that the hack involved three separate signatures from different devices with distinct hardware wallets.
WazirX’s journey towards recovery following the security breach is a complex and challenging process. The exchange’s proactive efforts to engage with partners, law enforcement, and the hacking community demonstrate a commitment to resolving the issue and regaining the trust of its users. As the investigation unfolds and recovery measures are implemented, the cryptocurrency community will closely monitor WazirX’s progress and the implications of this incident on the broader industry.
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