WazirX

Indian cryptocurrency exchange platform WazirX saw a massive security breach in its wallets, as users registered a loss of around $230 m (₹1,925.6 crore) on July 18.

WazirX took to X to verify the cyber attack on one of their “multisig wallets” (multiple keys required for transaction). In the post, they stated, “A cyber attack occurred in one of our multisig wallets involving a loss of funds exceeding $230 million. This wallet was operated utilizing the services of Liminal’s digital asset custody and wallet infrastructure from February 2023.”

The embezzled funds reportedly account for around 45% of the firm’s $500 m holdings.

A blockchain sleuth reported that North-Korea based attackers were behind this massive crypto breach.

A report tracking the blockchain data suggests that the perpetrators misappropriated shiba inu tokens the most, worth around $100 m, followed by $52 m of ether, $11 m of Matic’s MATIC, and $6 m of pepe tokens.

WazirX is a Financial Intelligence Unit (FIU) registered firm, which enables Indian users to trade on the platform.

WazirX accuses wallet partner

Following the cyber attack, accusations have arisen between WazirX and their wallet partner, Liminal Custody.

WazirX claims the breach stemmed from discrepancies in Liminal’s interface, allowing attackers to transfer wallet control.

Liminal Custody, however, denied any breach of their platform, stating it remains secure and fully operational. They attributed the malicious transactions to compromised machines on WazirX’s end.

Legal action followed this massive security breach, as WazirX filed a police complaint, and “are pursuing additional legal actions”.

They stated in a post on X: “We have reported the incident to the FIU and CERT-In. We’re reaching out to 500+ exchanges to block the identified addresses. Many exchanges are cooperating with us, and we are actively working with them on additional resources to aid our recovery efforts.”