Major security concerns have gripped the Indian cryptocurrency market after Web3 security firm Cyvers detected a massive hack on WazirX’s Ethereum-based Safe Multisig wallet.
According to reports, “multiple suspicious transactions” resulted in the transfer of a staggering $234.9 million from the wallet to a new address. The transactions were allegedly facilitated by Tornado Cash, a decentralized protocol known for anonymizing cryptocurrency transactions.
Tracing the Trail: Tether, Memes, and Big Money
Further investigation reveals that the stolen funds, primarily comprised of Tether (USDT), were swiftly swapped into Ether (ETH) on the new address. Additionally, tokens like Pepe (PEPE) and Gala (GALA) were also part of the swapped assets.
Crypto sleuth ZachXBT, through his Telegram channel “Investigations by ZachXBT,” estimates that the attacker still holds over $104 million worth of cryptocurrency in the new address, suggesting a potential fire sale of the remaining stolen assets.
An analysis of the stolen funds reveals a diverse composition. While a significant portion, roughly $100 million, was in Shiba Inu (SHIB), the wallet also held substantial amounts of Ethereum (ETH), Polygon (MATIC), and other tokens like Chainlink (LINK) and Fetch.ai (FET).
WazirX Responds with Suspension
WazirX has reacted swiftly to the security breach by temporarily suspending both cryptocurrency and Indian rupee withdrawals on its platform. The exchange, through an official post, assured users that their team is “actively investigating the incident” and will provide further updates as the situation develops. Cointelegraph’s attempt to reach WazirX for comment regarding user fund safety and recovery measures proved unsuccessful at the time of writing.
India’s Regulatory Quandary
This incident highlights the ongoing regulatory uncertainty surrounding cryptocurrencies in India. In March 2024, the Financial Intelligence Unit (FIU) issued compliance notices to several foreign exchanges, including OKX, effectively pushing them out of the Indian market.
Also Read: LiFi Protocol Hacked: Over $8 Million Drained, Users Urged to Revoke Approvals
With discussions regarding cryptocurrency regulations dragging on for nearly four years, the Indian government has yet to establish a clear framework for the industry. This lack of clarity leaves Indian crypto users vulnerable and hinders the overall growth of the market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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