Crypto Firm WazirX Hit by Security Breach Stealing $235 Million

## WazirX Cryptocurrency Platform Faces Security Breach, Losing $235 Million in Assets

In a significant turn of events, WazirX, one of India’s prominent cryptocurrency platforms, recently fell victim to a security breach that resulted in the unauthorized transfer of approximately $235 million in assets. The breach was discovered when suspicious transactions were identified moving funds from one of WazirX’s multisig wallets to a new address on the Ethereum network.

### The Breach Incident

WazirX promptly responded to the breach, confirming that one of its Liminal multisig wallets had indeed been compromised. Multisig wallets are designed to require multiple private keys for authentication, enhancing security by necessitating consensus for transactions. The company initiated an investigation into the incident and took immediate measures to secure its platform, including temporarily halting both Indian Rupee (INR) and cryptocurrency withdrawals.

### Details of the Breach

Cyvers, a reputable Web3 security firm, detected several suspicious transactions associated with WazirX’s compromised Safe Multisig wallet on the Ethereum network. These transactions led to the movement of a substantial amount – $234.9 million – to an unauthorized address. The unauthorized address was observed converting various tokens, including Pepe, Gala, USDT, and others, to Ethereum. Each transaction’s anonymity was further bolstered through the use of Tornado Cash, a decentralized protocol for concealing transaction origins on the Ethereum blockchain.

According to reports from Lookchain, a third-party blockchain explorer, the assets transferred out of WazirX included SHIB tokens valued at $102 million, over 15,000 Ethereum tokens, 20.5 million Matic tokens, 640.27 billion Pepe tokens, 5.79 million USDT, and 135 million Gala tokens.

### Fallout and Consequences

The breach comes at a time when WazirX had recently severed ties with Binance, a major player in the global cryptocurrency market. This decision was a result of a public dispute over ownership in 2022, culminating in their split in early 2023. Furthermore, earlier this year, India’s Financial Intelligence Unit had taken stringent action against foreign crypto exchanges, including Binance, for non-compliance with anti-money laundering regulations, further complicating the regulatory landscape for cryptocurrency platforms in the country.

The ongoing investigation into the security breach at WazirX underscores the persistent threat of cyberattacks in the cryptocurrency space and the need for robust security measures to safeguard digital assets. As users await further updates from WazirX on the breach and its implications, the incident serves as a stark reminder of the risks associated with digital asset management and the importance of vigilance in the evolving landscape of cryptocurrency security.