India-based cryptocurrency exchange, WazirX has suffered a security breach that has moved $234.9 million from its coffers. The exchange in a post on X confirmed the attack in the early hours of Thursday.
According to the exchange, one of its multisig wallets belonging to the platform suffered a hack. Meanwhile, in the post, WazirX failed to stipulate the degree of the attack or give insights into the amount the hackers stole.
However, the crypto exchange disclosed that it is presently investigating the issue. WazirX further added that it has suspended deposits and withdrawals on the platform to ensure that users’ assets are intact.
In the post, the cryptocurrency exchange promised to keep users and community members updated about the issue. It is worth mentioning that news about the hack hit the media space after a host of blockchain security firms including Cyvers raised the alarm.
On July 18, Cyvers reported that it had detected numerous suspicious transactions from a multisig wallet belonging to the exchange on Ethereum. The web3 security firm disclosed that the hacker moved $234.9 million to a new address.
Another blockchain security expert, crypto sleuth ZachXBT announced in the “Investigations by ZachXBT” channel on Telegram that the hacker’s primary address still holds more than $104 million worth of the stolen assets.
Side Note on WazirX
In the past, WazirX has been the subject of huge controversy after the Enforcement Directorate (ED) of India seized the assets of the exchange due to money laundering allegations. Around August 2022, Binbits reported that a disagreement ensued between the CEO of Binance and the co-founder of WazirX.
According to the report, Binance denied its ownership of WazirX after the ED froze the assets of the crypto exchange. On the contrary, the co-founder of WazirX, Nischal Shetty refuted the claims and argued that the leadership of Binance took over the control of WazirX after acquiring it two years ago.
Later another separate report by Binbits established that the ED had lifted the restrictions on WazirX. The relaxation of the embargo on WazirX surfaced after the exchange had complied with the regulator throughout the investigation period.
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