Multisig Wallet Compromised, Assets Stolen
WazirX, a leading Indian crypto exchange, has been hit with a significant security breach. The Mumbai-based firm announced on Thursday that its multisig wallet had suffered a security breach, resulting in the loss of approximately $230 million.
What is a Multisig Wallet?
A multisig wallet requires two or more private keys for authentication. In this case, WazirX’s wallet had six signatories, five of whom were part of the WazirX team. This added layer of security was meant to prevent unauthorized transactions.
The Security Breach
According to WazirX, the cyber attack stemmed from a discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents. The exchange suspects that the payload was replaced to transfer wallet control to an attacker.
Blockchain Explorer Report
Lookchain, a third-party blockchain explorer, reported that more than 200 cryptocurrencies were "stolen" from the platform. This includes:
- 5.43 billion SHIB tokens
- 15,200 Ethereum tokens
- 20.5 million Matic tokens
- 640 billion Pepe tokens
- 5.79 million USDT
- 135 million Gala tokens
Attackers’ Next Steps
Blockchain data suggests that the attackers are trying to offload the assets using the decentralized exchange Uniswap.
Risk Management Platform Investigation
Risk-management platform Elliptic reported that the hackers have affiliation with North Korea. This has significant implications for the global crypto community, highlighting the ongoing threat of state-sponsored hacking groups.
WazirX Response
WazirX confirmed that it had lost $230 million in the security breach and stated that they are leaving no stone unturned to locate and recover the funds. The exchange has blocked a few deposits and reached out to concerned wallets for recovery.
Comparison with Binance
This is not the first time WazirX has faced a significant issue. In 2022, Binance announced it had acquired WazirX. However, two years later, the two companies started a dispute over the ownership of the Indian firm. Eventually, Binance founder Changpeng Zhao terminated Binance’s businesses with the Indian firm.
Other Crypto Exchanges’ Response
CoinSwitch and CoinDCX, two other leading crypto exchanges in India, assured their customers that their funds were secure and unaffected by this incident.
Conclusion
The security breach at WazirX is a significant setback for the exchange and highlights the ongoing risk of cyber attacks in the crypto industry. It remains to be seen how WazirX will recover from this incident and whether other exchanges will implement similar measures to protect their assets.
Update:
This story was updated throughout the day, including most recently at 11:03 p.m. India Standard Time to include WazirX’s confirmation that it lost the crypto assets in the security breach.
Sources:
More Related Stories:
