WazirX Hacking Incident – North Korean Lazarus Group Suspected

WazirX Hacked– North Korean Group Linked to this Massive Crypto Breach

On July 18, 2024, WazirX Hacked, one of India's biggest cryptocurrency exchanges, suffered a huge breach or fell victim to a massive hack. Thieves stole approximately $235 million worth of digital money from the exchange's storage wallet.

The hackers broke into WazirX's special wallet on the Ethereum network. This wallet called a "Safe Multisig" wallet, was supposed to be extra secure. But the thieves found a way in and moved a huge amount of money to a new address they controlled.

WazirX Hacked – What Exactly Happened?

WazirX is one of the Indian crypto exchanges.

Security experts discovered multiple suspicious transactions involving WazirX's Safe Multisig wallet on the Ethereum blockchain. The hackers successfully transferred roughly $235 million in various cryptocurrencies to a new address. They then started converting these funds into Ethereum (ETH), the second-largest cryptocurrency by market value.

Stolen Funds – WazirX crypto stolen; The stolen money included many different types of cryptocurrencies. Some of the largest amounts were:

• $100 million in Shiba Inu (a popular meme coin)

• $52 million in Ethereum

• $11 million in Polygon

• Smaller amounts of other coins like FLOKI, Fantom, and Chainlink

After stealing the money, the hackers quickly converted the majority of the stolen currencies into Ethereum. They ended up with approximately 59,097 Ethereum, worth around $201 million. They still have some coins available to sell.

WazirX's Response

As soon as WazirX found out about the hack, they stopped all withdrawals on their platform. This means users can't take out their money for now. The exchange said they're looking into what's wrong. The exchange announced that it was "actively investigating the incident" and promised to keep users updated.

Who's Behind the Attack?

Interestingly, blockchain analysis firms like Elliptic and crypto investigator ZachXBT believe that the hack may have been carried out by North Korean hackers, specifically the infamous Lazarus Group. This group has been behind several major crypto heists in the past.

As we know North Korean Hackers Suspected – Experts who study crypto crimes think North Korean hackers might be responsible. A group called the Lazarus Group, known for big crypto heists, is the main suspect. The way the hack was done matches their usual methods.

It looks like the hackers had been planning this for at least a week. They might have tricked WazirX crypto into updating their wallet with a fake, malicious version. This gave the hackers a way to drain the funds later.

Market Impact

The hack had immediate effects on the crypto market– 

• Shiba Inu (SHIB) prices fell by 10% as the hackers sold large amounts of the token.

• Other altcoins also experienced price drops.

• Ethereum remained relatively stable, possibly due to upcoming ETF launches. And even some think it could make Ethereum's price go up.

In fact, there is one controversy and speculation that some in the crypto industry are wondering and questioning if WazirX might be responsible for its own breach. While there is no actual proof to support this assertion, such speculation is not unusual following large exchange hacks.

Now, What's Next?

WazirX is still investigating and trying to recover the stolen funds. They've blocked some deposits and are reaching out to other crypto platforms for help.

For users, the big question is when they'll be able to access their money again. WazirX hasn't given a timeline for this yet.

As the WazirX hacked and as the investigation continues, key questions remain:

• Can the stolen funds be recovered?

• How will this impact WazirX's business and reputation?

• Will this incident result in stronger rules for cryptocurrency exchanges in India?

Users of WazirX and other crypto platforms are advised to stay alert and keep an eye out for official updates from the exchange.

Broader Context

This incident highlights the ongoing security challenges in the crypto world, especially in countries like India where regulations are still emerging. It comes at a time when India's government has been tightening rules for crypto exchanges, with some foreign platforms even leaving the Indian market.

This hack is one of the largest in crypto history and shows how vulnerable even big exchanges can be. It's also another example of how North Korean hackers are targeting the crypto world to steal money.

As the story goes, people will be curious to see if WazirX can recover any of the stolen funds and how this would affect trust in the exchange and the wider Indian crypto market.

Final Thought

The attack of WazirX is a clear warning of the dangers of investing in cryptocurrencies and the need for strong security measures. Users and platforms must put security first above everything else because as the crypto sector grows, so does the sophistication of attacks.

Also read – Vitalik Buterin's Views on Crypto and Political Nexus