WazirX, branded as the India ka Bitcoin exchange has been forced to halt all trading activities for all pairs following a major cyberattack that resulted in the theft of approximately $230 million worth of digital.
📢 Trading has been temporarily paused
The cyber attack theft has impacted our ability to maintain 1:1 collaterals with assets, and we’ve temporarily paused trading.
We’re conducting thorough forensic data examination and security audit procedures and working to enable…
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 21, 2024
As hackers exploited a vulnerability in their multi-signature wallet system, compromising the security of stored funds. The stolen assets reportedly include various cryptocurrencies, with Shiba Inu being the most affected. The attack has severely impacted WazirX’s ability to maintain a 1:1 collateral ratio with user holdings, a vital aspect of ensuring user funds are backed by actual reserves.
In response to the incident, WazirX had initially paused trading and withdrawals on a temporary basis. The exchange is conducting thorough forensic data examinations and security audits to identify the source of the breach and prevent future attacks. Additionally, WazirX has announced plans to resume withdrawals as soon as possible. To incentivize the return of stolen funds, they’ve offered a $23 Million bounty program, promising a significant reward for recovered assets.
The trading halt and the sheer size of the stolen funds have caused significant uncertainty and anxiety among WazirX users. Many are concerned about the platform’s ability to recover from this attack and the security of their remaining holdings. This incident is likely to have a ripple effect on the Indian crypto market, potentially leading to decreased investor confidence and a decline in trading volume across exchanges.
