- WazirX has stopped processing deposits and withdrawals after a major hacker attack.
- The exchange cited impersonator emails as the reason for the service suspension.
- WazirX lost $235 million to the alleged North Korean hacking group Lazarus Group.
- Trading had already been suspended due to the hack’s impact on 1:1 asset collaterals.
- A bounty program has been announced to help recover or freeze the stolen funds.
Cryptocurrency exchange WazirX has stopped processing deposits and withdrawals after suffering a $235 million hacker attack.
The Indian trading platform announced the suspension on July 22, citing fraudulent emails from impersonators pretending to be WazirX.
In a post on X, the exchange did not specify when these services would resume. WazirX reassured its customers that it is actively monitoring and addressing these fraudulent activities. The platform urged users to double-check email IDs and avoid clicking on suspicious links.
Hacker Attack and Its Aftermath
The suspension of services comes after a significant hacker attack. On July 18, the Lazarus Group, an alleged North Korean hacking organization, exploited on-chain manipulations to compromise the signatories of WazirX’s multisig wallet. The attackers managed to siphon off multiple tokens, resulting in a loss of nearly $235 million.
This attack had an immediate impact on the exchange’s operations. The day prior to halting deposits and withdrawals, WazirX had suspended trading activities.
The exchange stated that the hack affected its ability to maintain a 1:1 collateral ratio with assets, causing them to take precautionary measures.
Response and Bounty Program
In response to the incident, WazirX co-founder Nischal Shetty announced a bounty program aimed at recovering or freezing the stolen funds.
This move is part of broader efforts to mitigate the damage and restore trust among the platform’s users. The bounty program is intended to incentivize individuals and organizations to provide information that could help track down the stolen assets.
WazirX has been actively working with cybersecurity experts and law enforcement agencies to address the situation. The platform’s team is closely monitoring the affected wallets and is in the process of implementing additional security measures to prevent future attacks.
User Reactions and Future Steps
The sudden suspension of services and the magnitude of the hack have understandably caused concern among WazirX users and the broader cryptocurrency community.
Many users took to social media, expressing their worries about the security of their funds and seeking updates from the exchange.
WazirX has promised to keep its users informed as the situation develops.
Conclusion
The recent events surrounding WazirX highlight the persistent security challenges faced by cryptocurrency exchanges. The hack, orchestrated by the Lazarus Group, underscores the sophisticated tactics employed by cybercriminals.
Despite these challenges, WazirX’s proactive response, including the bounty program and increased security measures, shows its commitment to protecting user assets and restoring trust.
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