Crypto Exchange WazirX Targeted in $230 Million Heist, Trading Paused

Crypto Exchange WazirX Halts Trading After $230 Million Crypto Heist!

Crypto Exchange WazirX (WRX +1.69%) has suspended trading across its platform after a recent exploit led to a loss of $230 million from its wallet. The breach, which occurred on July 18, was the result of a private key compromise.

Impact on Collaterals and Temporary Trading Pause

In an announcement on X, WazirX explained, “The cyber attack theft has impacted our ability to maintain 1:1 collaterals with assets, and we’ve temporarily paused trading.” The attack resulted in the theft of over $100 million worth of Shiba Inu (SHIB -0.31%), as well as significant amounts of MATIC (+0.18%), PEPE (+0.081%), USDT (-0.077%), and GALA (-0.13%) tokens. Evidence suggests that the North Korean state-sponsored Lazarus Group may be responsible, with most of the stolen assets converted into ether.

Forensic Examination and Security Audits Underway

WazirX is currently conducting thorough forensic data examinations and security audits to address the breach. “We’re conducting thorough forensic data examination and security audit procedures and working to enable withdrawals soon. User safety remains our top priority,” the exchange stated in its announcement.

Bounty Program to Recover Stolen Funds

In an effort to recover the stolen funds, WazirX has launched a bounty program, inviting cybersecurity and blockchain experts to assist. The company initially offered 5% of the recovered funds as an incentive but later doubled the reward to 10% following feedback from blockchain sleuth ZachXBT. Additionally, WazirX is offering “up to $10,000 worth of USDT” for actionable intelligence leading to the freezing of the funds. The program is set to last three months, though this timeframe may be amended.

Challenges in Recovering Funds from Lazarus Group

Despite the increased bounty, the likelihood of recovering funds from the Lazarus Group remains low. ZachXBT noted, “$10M bounty means nothing if it is indeed Lazarus Group as they are not going to just hand over the funds or be located and held legally accountable. 5% is lower than 10%+ industry standard.” He also clarified that he would not be assisting in the investigation due to the extensive resources required.

Previous Successes and Ongoing Efforts

Although recoveries from Lazarus Group hacks are rare, there have been notable successes. In September 2022, $30 million was recovered from the Lazarus Group-linked $600 million hack of Axie Infinity’s Ronin Bridge. Erin Plante, senior director of investigations at Chainalysis, expressed optimism, stating, “…We’re confident it won’t be the last.”

FAQ: WazirX Halts Trading Following $230 Million Exploit

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