Cryptocurrency Exchange WazirX Takes Action After $235M Hack

Following a significant hack that resulted in a loss of $235 million for investors, the India-based cryptocurrency exchange WazirX has responded promptly by filing a police complaint to recover the stolen funds and minimize the impact of the breach.

Legal Steps Taken by WazirX

WazirX has reported the incident to the Financial Intelligence Unit (FIU) and CERT-In, India’s Computer Emergency Response Team. The exchange has also initiated legal actions and filed a police complaint in response to the cyber attack. Additionally, WazirX has reached out to more than 500 other crypto exchanges to block the identified addresses linked to the exploit, which resulted in the loss of various tokens.

Cryptocurrency Exchange Wazirx Takes Action After $235M Hack

The exchange is actively collaborating with other exchanges to recover the stolen assets and support affected customers. WazirX’s immediate priorities include tracking the stolen funds, reclaiming customer assets, and conducting a detailed analysis of the cyber attack. By working with forensic experts and law enforcement agencies, WazirX aims to identify and apprehend those behind the exploit.

As part of the investigation, WazirX has identified additional smart contracts that were exploited and is closely examining the incident. The exchange has established a dedicated website to safeguard user funds, urging customers to revoke all approvals to enhance security and protect their assets.

Security Vulnerability in Multisig Wallet

According to a report by WazirX, the cyber attack targeted one of their multisig wallets that utilized Liminal’s digital asset custody and wallet infrastructure. The wallet’s configuration involved six signatories, with a whitelisting policy in place to bolster security. The breach was attributed to a discrepancy between the displayed data on Liminal’s interface and the actual transaction content.

Despite the recent market recovery, with the total market capitalization at $2.3 trillion, SHIB has shown signs of improvement after a decline following the hack. The token has experienced a 3% increase in trading price, demonstrating resilience in the market.

Image source: DALL-E, chart from TradingView.com

Bitrabo Editorial
Bitrabo Editorial
Editorial Team

The Bitrabo Editorial team is the collective voice behind Bitrabo’s trusted crypto coverage. From breaking news and market updates to in-depth research and guides, this account represents the combined efforts of our writers, analysts, and editors. Every article published under Bitrabo Editorial is fact-checked, curated, and written to inform, empower, and guide our growing global audience through the world of Web3, blockchain, and digital finance. When you see Bitrabo Editorial, you’re reading insights directly from the heart of our newsroom.