Following a $234.9 million hack, Indian crypto exchange WazirX filed a complaint with law enforcement and started preparing to recover customer assets.
See more
📢 Update: In response to the cyber attack, we have filed a police complaint and are pursuing additional legal actions. We will keep the community updated as we proceed.
» Immediate Actions: We have reported the incident to the Financial Intelligence Unit (FIU) and CERT-In.…
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 19, 2024
“We have reported the incident to the Financial Intelligence Unit of India and CERT-In. We have reached out to over 500 exchanges to block the identified addresses. Many platforms are cooperating and we are actively working with them to find additional recovery resources. “, the publication says.
WazirX co-founder Nischal Shetty wrote a separate post announcing a bounty program in the works. The initiative is intended to help “freeze or recover” stolen assets.
See more
WazirX Team is actively working on next steps.
1. We’re preparing a bounty program to help us freeze/recover the stolen assets
2. Further discussions on continuous tracing of fund movements, we’re in touch with a few teams that claim to be experts at this.
3. We’ve informed all…— Nischal (Shardeum) 🔼 (@NischalShetty) July 20, 2024
The exchange team is also in talks with several expert groups that specialize in tracking cryptocurrency transactions, Shetty added.
“We have informed other trading platforms. Some have responded, some have not yet. We are monitoring this. Their support in recovery will be critical as the stolen funds move,” he said.
The team is currently analyzing the data to understand the extent of the damage. According to the company’s co-founder, this “unprecedented attack on one of India’s largest crypto exchanges has negatively impacted the entire Web3 ecosystem.”
Elliptic analysts previously tracked the movement of funds stolen from WazirX. They concluded that North Korean hackers were behind the hack.
Recall that at the beginning of 2022, the exchange was accused of tax evasion in the amount of more than $6 million.
In August of the same year, the Enforcement Directorate of the Ministry of Finance of India suspected WazirX of laundering $350 million. According to media reports, the regulator froze the platform’s assets worth $8.16 million as part of the case. The company later regained access to the accounts thanks to its cooperation with the investigation.
Found a mistake in the text? Select it and press CTRL+ENTER
ForkLog newsletters: keep your finger on the pulse of the bitcoin industry!
WazirX Files Complaint After $234.9 Million Hack, Prepares to Recover Stolen Funds
Indian cryptocurrency exchange WazirX has filed a police complaint and is taking legal action following a $234.9 million hack. The exchange is actively working to recover customer assets and has reached out to over 500 exchanges to block the identified addresses associated with the stolen funds.
In a tweet, WazirX stated: “📢 Update: In response to the cyber attack, we have filed a police complaint and are pursuing additional legal actions. We will keep the community updated as we proceed.”
WazirX Implements Bounty Program and Seeks Expert Help
The exchange has announced a bounty program to encourage the recovery of stolen assets. WazirX co-founder Nischal Shetty highlighted the program’s objective: “We’re preparing a bounty program to help us freeze/recover the stolen assets.”
Shetty further explained that the team is in touch with groups specializing in tracking crypto transactions to help trace the stolen funds. He emphasized the significance of other platforms’ cooperation: “We’ve informed other trading platforms. Some have responded, some have not yet. We are monitoring this. Their support in recovery will be critical as the stolen funds move.”
Elliptic Identifies North Korean Hackers as Suspects
Analysts at Elliptic have traced the movement of the stolen funds and concluded that North Korean hackers are responsible for the attack. This highlights the increasing threat of state-sponsored cybercrime in the cryptocurrency space.
WazirX’s Previous Financial Troubles
The latest incident adds to WazirX’s history of financial scrutiny. In early 2022, the exchange faced allegations of tax evasion totaling over $6 million. Later that year, the Enforcement Directorate of the Ministry of Finance of India investigated WazirX for alleged money laundering of $350 million, freezing platform assets worth $8.16 million.
Despite the challenges, WazirX successfully regained access to its frozen accounts following cooperating with the investigation.
Impact on the Web3 Ecosystem
WazirX’s statement emphasizes the broader implications of the attack: “This unprecedented attack on one of India’s largest crypto exchanges has negatively impacted the entire Web3 ecosystem.”
The incident underscores the vulnerability of centralized exchanges to cyberattacks and the need for increased security measures and robust recovery protocols. It also highlights the importance of international collaboration and the sharing of information among exchanges to prevent similar incidents in the future.
