WazirX hacked, $234M+ stolen

[Rikafip]

News about Indian exhange WazirX being hacked is all over the twitter and looks like attacker withdrew several altcoins and then swapped them to ETH. Still no cofnirmation from the xchange about being hacked so its best to take this news with the grain of salt until official confirmation or more details.


https://x.com/CyversAlerts/status/1813834131165286464

[Oshosondy]

You posted this before me earlier. I will lock the thread that I created about this.

What that surprised me is that it is an ethereum multisig wallet. I have not heard of multisig wallet hack before until today and that made me to really be surprised.

This is one of the reasons it is not good to leave your coins on exchanges.

[Rikafip]

What that surprised me is that it is an ethereum multisig wallet. I have not heard of multisig wallet hack before until today and that made me to really be surprised.

Yep, didn't expect that. Anyway, its been official now as WazirX confirmed that there's been a "breach" and all withdrawals have been paused.

Update: We're aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding. We'll keep you posted with further updates.

This is one of the reasons it is not good to leave your coins on exchanges.

Relax man, you know that funds are SAFU. 

[tabas]

looks like attacker withdrew several altcoins and then swapped them to ETH.

This might have been the reason why Shiba inu was dumped today.

This is one of the reasons it is not good to leave your coins on exchanges.

It's never been a good thing to leave funds in exchanges. But, most of those that keep their funds on exchanges like wazirx are traders and folks that wants to liquidate their funds as soon as the market has a sudden change.

[Potato Chips]

op

Huge hit to them as the amount hacked is nearly half of their reported proof of reserves:

As of June 10, 2024, at 6:30 PM, WazirX’s total holdings stood at an impressive ₹4,203.88 Crores (USDT 503.64 Million),

and there could be a bank run once they resume withdrawals. Plus the longer normal operations are halted will likely cause more anxiety to people.

What that surprised me is that it is an ethereum multisig wallet. I have not heard of multisig wallet hack before until today and that made me to really be surprised.

Looks like perps were able to compromise their wallet interface hence wazirX team were not aware of what they actually signed. 🤔

The cyber attack stemmed from a discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents,” said WazirX in a statement on Thursday. “During the cyber attack, there was a mismatch between the information displayed on Liminal’s interface and what was actually signed. We suspect the payload was replaced to transfer wallet control to an attacker.”

[hugeblack]

Ethereum hacking has become more popular with Tornadocash and with their plans to expand and this technical error, I do not think they will survive in the next bear market.

[Bournesparks]

News about Indian exhange WazirX being hacked is all over the twitter and looks like attacker withdrew several altcoins and then swapped them to ETH. Still no cofnirmation from the xchange about being hacked so its best to take this news with the grain of salt until official confirmation or more details.


https://x.com/CyversAlerts/status/1813834131165286464

Is there a specific reason why it was switched to ETH? With robust protection funds like those of Bitget, users shouldn't be concerned. Alternatively, they can diversify to a platform without a hacking record, like the one I mentioned earlier.

[Rikafip]

Ethereum hacking has become more popular with Tornadocash and with their plans to expand and this technical error, I do not think they will survive in the next bear market.

From what I understand, hack didn't happen because some issue with Ethereum but because of the human error. They simply signed the trasnaction they shoulnd't have.

With robust protection funds like those of Bitget, users shouldn't be concerned. Alternatively, they can diversify to a platform without a hacking record, like the one I mentioned earlier.

You just can't miss an opportunity to shill Bitget, don't you? With that being said, no exchange should be used as a bank, including Bitget as nothing is 100% foolproof.

[Oshosondy]

This is one of the reasons it is not good to leave your coins on exchanges.

Relax man, you know that funds are SAFU. 

Can you give a broad explanation about this? Do you have a link about WazirX customers fund that are SAFU? Even if the fund are in SAFU, what is the probability that customers will get their coins if the exchange lost significant amount?

Not your key not your coin is not about lost of coins alone, it is also about people having the control over their coins at anytime they need the coins. What I read last was that WazirX withdrawal has been disabled.

[Rikafip]

Can you give a broad explanation about this?

Nothing to explain really as I thought that smiley/laughing emoticon at the end will make it obvious that it was just a joke but I guess I was wrong.  

[TheUltraElite]

They have launched a bounty for the missing funds.

WazirX launches bounty program to recover stolen assets

With the crypto sector in India already in a bad shape, some users are speculating that the hack might be a inside job. None of us have any proof but it is a common theory, while the owners are trying to make the thing work, the government is trying its best to keep it down and thus they resort to stealing the money of the people who trust them. It can be the truth or a utter cock and bull story.

The crypto legal framework in India is not even in the conception era, it literally does not exist. If things work out properly and they are able to track the hackers it will be a landmark case in history.

[examplens]

News about Indian exhange WazirX being hacked is all over the twitter and looks like attacker withdrew several altcoins and then swapped them to ETH. Still no cofnirmation from the xchange about being hacked so its best to take this news with the grain of salt until official confirmation or more details.

Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?
I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.

[Rikafip]

Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?

My guess is that the money stolen was not only their own money but their client's as well, and when you take into cosndieration size of Indian market and the fact that its their biggest crypto exchange then that amount is not surprising at all.

I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.

Not the first and certainly not the last time such a big amount has been stolen from a crypto exchange so we can say its business as usual. 

[Z-tight]

and there could be a bank run once they resume withdrawals. Plus the longer normal operations are halted will likely cause more anxiety to people.

They cannot even resume withdrawals and trading, unless they miraculously recover the funds. Now that they have been hacked and lost a substantial amount of funds, the assets remaining is surely way smaller than liabilities, so there is no way they can resume normal operations. Stopping withdrawals is not just to protect customer funds, but because they cannot cover withdrawals if many people want to withdraw their money, and that means bankruptcy.

Is there a specific reason why it was switched to ETH? With robust protection funds like those of Bitget, users shouldn't be concerned. Alternatively, they can diversify to a platform without a hacking record, like the one I mentioned earlier.

Lol, shiller.

[FinneysTrueVision]

Is there a specific reason why it was switched to ETH?

Probably so they could launder their funds through Tornado Cash. Also, many of these tokens like PEPE would not be considered a good store of value so it makes sense to dump them for ETH. They also don’t want their stablecoins frozen, so they would need to exchange those also.

[hugeblack]

Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?
I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.

Not only that, but this platform is the fastest growth in India and Binance tried to acquire it in the past before leaving the Indian market, but it seems that the Indian market is growing quickly as another Indian platform called Coindcx bought Bitoasis, which indicates growth in the number of Indian users.

Is there a specific reason why it was switched to ETH?

With the difficulty of finding a decentralized bitcoin mixer and trust in central mixing services, I think Tornado Cash will be a good choice for them.

[cryptomaniac_xxx]

Here is the update from the WazirX hacked, they are offering a bounty program,

https://wazirx.com/blog/wazirx-bounty-program/

White Hat Recovery Bounty: Assist in the recovery of the stolen funds with 10% of the recovered amount as a reward. We are offering 10% (maximum up to $23 Million, i.e., 10% * $230 Million = $23 Million) as White Hat Bounty to the WazirX hacker in exchange for the return of the funds to the following wallet address:

ERC20 Wallet Address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf

So the program is very attractive, a 10% rewards for someone, that can recover the funds and return it to the wallet that they have put into the program.
Most likely we might see some groups here trying their best in ethical way because the bounty is very big and it could be one of the biggest bounty so far that we have heard.

[examplens]

So the program is very attractive, a 10% rewards for someone, that can recover the funds and return it to the wallet that they have put into the program.
Most likely we might see some groups here trying their best in ethical way because the bounty is very big and it could be one of the biggest bounty so far that we have heard.

It is attractive, 10% of 235 million is a large amount. Given that the hackers have already started to sell some part of the assets, I think they are not interested in being good Samaritans and returning the funds (minus the bounty).
I don't see how anyone else will be able to return those coins, regardless of whether it's legal or not. However, they are now in the hands of someone who is technically well-versed, they are not ordinary users who hold unprotected private keys.

[KingsDen]

What that surprised me is that it is an ethereum multisig wallet. I have not heard of multisig wallet hack before until today and that made me to really be surprised.

Maybe hack us not the right word to use when a multiSig wallet is compromised. There would definitely be a conspiracy between the parties involved. Whenever there's a news of hack, my first instinct says it's insiders.

Is there a specific reason why it was switched to ETH?

Use Tether or other stable coins the assets would be frozen. They are becoming smarter.

It is attractive, 10% of 235 million is a large amount.

When do we start having people rendering this kind of services in the forum.

[Nrcewker]

Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?

WazirX is a very popular exchange for all the Indian people. WazirX does its marketing all over the Indian audience and has a huge user base. It is sad to see that these types of breaches and hacks are happening with reputable exchanges. The main reason why many people joined this exchange is that it was legalized by the government of India. The government used to regulate all the transactions on WazirX and used to impose tax on it. My only concern is that the government used to take daily taxes, but now that there is a hack, will the government compensate the traders and investors also?