WazirX Hackers Transfers Assets to New Wallet; What Next?

WazirX Hack: Assets Transfered to New Wallet

According to a recent report by blockchain security firm PeckShield the attackers behind the $230 Million WazirX hack have transfered another $57 million of the stolen funds to two new cryptocurrency addresses. The fund includes 16,350 Ethereum. 

The majority, over $54 million, was sent to a specific address “0x58d”. Moreover, WazirX is intensifying its bug bounty efforts, offering up to $10,000 for actionable intelligence to freeze the stolen funds and up to 10% of recovered amounts to ethical hackers. This chain movement could help uncover the hacker's identity.

Trading Stopped On WazirX

WazirX has paused trading to conduct a forensic data examination and security audit following a $230 Million hack. Founder Nischal Shetty stated that the recovery process will take time. 

The exchange launched a $23 million bounty program to recover stolen funds and later on increased the bounty amount.

The exchange is struggling to maintain 1:1 collaterals, impacting trading volumes and causing a liquidity crunch resulting in pausing the trading on the platform. 

Nischal Shetty founder of WazirX mentioned that they are working on determining the best method to enable withdrawals. He emphasized the need to thoroughly analyze all data to develop an effective plan, given that some assets have been stolen. Shetty acknowledged that the recovery process will be lengthy and asked users for patience.

Additionally, WazirX faced phishing attacks over the weekend, with fake compensation emails targeting users. Sumit Gupta, CEO of CoinDCX, warned the community about these fraudulent emails. 

Community Reaction to the Current Situation 

The community is angry about the recent WazirX hack expressing their emotions on the X platform. One user named Chandrashekhar B wrote "The irony with Indian 🇮🇳 exchanges is that hackers can withdraw funds from the exchange, but legitimate exchange users cannot withdraw their tokens or hold in self custody. WTH" 

Source: X

A another user named reducecryptotax raised concerns about the hack and government policies regarding cryptocurrency. He wrote " At first All CEX was removed from the Play Store so people can deposit fund only in #WazirX and after some time suddenly there was a hacking of $230M from only that exchange #WazirXHack, the government wants only tax, no responsibility for people fund. What's going on #CryptoCommunity." 

Conclusion

The $230 Million hack on WazirX has led to significant disruptions, including a temporary suspension of trading and a comprehensive forensic audit. Despite launching a $23 million bounty program to recover the stolen funds, WazirX faces challenges in maintaining liquidity and has experienced phishing attacks. Community reactions highlight frustration and concerns over security and regulatory issues. The path to recovery will be lengthy, requiring patience and robust security measures.

Also Read: WazirX Battles Cyberattack: Bounty Program Announced