WazirX Suspends Trading After $230 Million Cyberattack

WazirX, known as India’s ka Bitcoin exchange, has been forced to halt all trading activities for all pairs following a major cyberattack that resulted in the theft of approximately $230 million worth of digital currencies.

As hackers exploited a vulnerability in their multi-signature wallet system, the security of stored funds was compromised. The stolen assets reportedly included several cryptocurrencies, with Shiba Inu being the most affected. The attack severely compromised WazirX’s ability to maintain a 1:1 collateral ratio with user holdings, a critical aspect to ensuring that user funds are backed by actual reserves.

In response to the incident, WazirX initially suspended trading and withdrawals. The exchange is conducting thorough forensic data investigations and security audits to identify the source of the breach and prevent future attacks. Additionally, WazirX has announced plans to resume withdrawals as soon as possible. To incentivize the return of stolen funds, they have offered a $23 million bounty program, promising a significant reward for recovered assets.

The trading halt and the sheer size of the stolen funds have caused significant uncertainty and fear among WazirX users. Many are concerned about the platform’s ability to recover from this attack and the safety of their remaining assets. This incident is likely to have a domino effect on the Indian crypto market, potentially leading to reduced investor confidence and a decline in trading volumes on exchanges.