India’s largest cryptocurrency exchange, WazirX, has suffered a devastating security breach, resulting in the theft of $235 million in crypto assets on July 18, 2023.
The hacker responsible for the attack has recently moved $6.5 million worth of Ethereum (2,600 ETH) to the controversial cryptocurrency mixer, Tornado Cash, making it difficult for security experts to trace and recover the stolen funds.
WThe transaction was flagged by Blockchain Security Firm Peckshield, which shared the details on social media.
The hack exploited WazirX’s multi-signature wallets, which are managed in partnership with Linea. This has led to disputes between the two parties over who is responsible for the breach. As a result of the attack, WazirX has paused trading on its platform since July 21 and is struggling to maintain balanced collateral against its assets.
In an attempt to mitigate the impact of the loss, WazirX initially proposed a social loss strategy, which would distribute the losses among all clients of the exchange.
However, this plan was met with strong opposition from the WazirX community, leading the exchange to abandon the strategy.
WazirX has now offered a bounty of 10% of the stolen assets to any ethical hacker who can help recover the funds. In the aftermath of the hack, WazirX’s native token dropped by 15%, reflecting the uncertainty and loss of confidence among investors.
The incident underscores the growing concerns over the security vulnerabilities in the cryptocurrency industry and the role of platforms like Tornado Cash in facilitating such attacks.