Indian exchange WazirX loses $234m in recent exploit

WazirX, one of India’s largest cryptocurrency exchanges by trading volume, has become the latest victim of a high-profile exploit, losing over $234 million across multiple crypto assets.

Cyvers, a leading web3 security resource, highlighted the breach earlier today, confirming that it involved WazirX’s Ethereum-based multi-signature wallet. Specifically, on-chain data confirms that losses reached $234.9 million at the time of reporting.

🚨WARNING🚨Hello @WazirXIndiaOur system has detected multiple suspicious transactions related to your Safe Multisig wallet. #ETH network.

Your total funds of $234.9 million were moved to a new address. Each transaction is funded by the caller @TornadoCash.

Suspicious… pic.twitter.com/4sajAwd4Hb

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) July 18, 2024

According to Etherscan data, the hack began at 06:19 UTC today, with the first transaction involving the movement of 4.1 Gnosis (GNO) from a WazirX wallet to the exploiters’ address. The hackers have since siphoned off multiple assets, including meme coins Pepe (PEPE) and Shiba Inu (SHIB).

Several addresses were created to mask the funds, which the exploiters moved between these addresses and eventually swapped the tokens for Ethereum (ETH) using Uniswap V3. So far, three addresses identified as belonging to the hackers are still holding these funds.

Notably, the primary address involved in the exploit currently holds 15,296 ETH worth $52.5 million, with the remaining assets totaling $25.1 million across over 100 tokens. Floki (FLOKI) makes up the second-largest single asset with a balance of $4.7 million.

At the time of reporting, there is little information on the cause of the attack. WazirX confirmed the breach in an X disclosure a few minutes ago, stating that its security team is investigating the vulnerability. The exchange stated that it has suspended crypto and Indian rupee (INR) withdrawals to protect customer assets.

📢 Update: We are aware that one of our multi-signature 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 suspended. Thank you for your patience and understanding.…

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

The latest exploit is the latest in a series of incidents recorded in the crypto scene recently. Two days ago, decentralized cross-chain protocol LI.FI suffered an exploit that resulted in the loss of over $8 million. A recent report stated that the hacking incidents led to a total loss of $176.2 million in June.