WazirX Cyberattack: Loss of $234 Million in Cryptocurrency
Yesterday, on July 18, 2024, India’s largest cryptocurrency exchange WazirX fell victim to a cyberattack by hackers, resulting in a staggering loss of over $234 million in cryptocurrency. In response to the attack, WazirX promptly filed a complaint with the Indian police, stating, “We have filed a complaint with police and are taking additional legal action. We will update the community as we progress.”
Seeking Legal Assistance
Following the incident, WazirX sought assistance from legal authorities and reported the cyberattack to the Computer Emergency Response Team of India (CERT-In), an agency under India’s Ministry of Information and Communications Technology. Under Section 70B of the Information Technology Act, 2000, CERT-In is the country’s primary agency for handling cyber threats like hacking and phishing. WazirX also mentioned that several other cryptocurrency exchanges have offered their support during this challenging time.
The WazirX team mentioned, “We are in contact with over 500 exchanges to block the identified addresses. Many exchanges are collaborating with us, providing additional resources to aid in our recovery efforts.”
Recovery Plans and Industry Challenges
In response to the hack, WazirX temporarily suspended rupee and cryptocurrency withdrawals and identified two more exploited smart contracts. With the help of law enforcement and ongoing investigations, Indian cryptocurrency exchanges have started developing recovery strategies. The team is focused on tracking stolen funds, recovering customer assets, and conducting a detailed analysis of the cyberattack. Collaboration with forensic experts and law enforcement agencies is ongoing to identify and apprehend the perpetrators.
During the third week of July, cryptocurrency hacking incidents were reportedly rampant. Cyvers Alerts, the same intelligence entity that disclosed the WazirX attack, revealed that Rho Markets had also been compromised, resulting in a loss of over $7.6 million. The vulnerability stemmed from the protocol’s blockchain oracle weakness.
Rho Markets acknowledged the breach, stating, “During this period, we will be suspending the platform. Most pools are secure, so there is no immediate cause for concern. Updates on our investigation progress will be shared with the community. Normal platform functionality will resume once the situation stabilizes. We appreciate your understanding and patience.”
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