WazirX Launching Bounty Program to Recover Stolen Funds
WazirX launching a bounty program to recover $230 million stolen in the July 18 hack.
On Thursday, the Indian crypto exchange suffered a multimillion hack, leading to huge financial losses. The renowned cybersecurity firm Elliptic reported that hackers escaped with over $230 million.
WazirX Launching Bounty Program to Recover Stolen Funds
The Elliptic team noted that the hackers stole over 200 different classes of crypto assets, including Shiba Inu, Ethereum, Polygon, and Pepe, worth $97 million, $ 52.6 million, $11 million, and $7.6 million, respectively.
On-chain data illustrated that the hackers swapped some stolen assets to Ether through decentralized exchanges to launder the ill-gotten fund. The multimillion hack attracted the attention of security experts to probe the case.
After monitoring the nature of the hack, the blockchain investigator claimed that the WazirX hack was affiliated with the North Korean hacking group. The WazirX team launched a bounty program to recover stolen funds in the ongoing investigation.
WazirX Losses $230 Million in Malicious Attack
On X, the embattled crypto exchange confirmed that preventive steps were taken to address the hack. Immediately after the incident, an internal investigation was conducted to examine the nature of the attack.
In their findings, the WazirX team noted that despite having adequate security measures, the hackers managed to compromise a multi-sig wallet, draining over $230 million. The compromised wallet was created in February 2023 and is supported by Liminal service.
Every transfer on this wallet requires six signatories from the Liminal and WazirX teams. Depending on the features of the multi-sig wallet, the WazirX team noted an abnormal transaction displaying a discrepancy between the Liminal interface and the actual transaction. This implies that the compromised wallet showcased a mismatch between the information on the Liminal interface and the actual transaction.
The WazirX team suspected that the hackers replaced the payload to take control of the wallet. The July 18 preliminary report was shared with the law enforcement unit, and the WazirX team plans to engage international bodies to probe the case.
On X, the crypto exchange confirmed that the attack was reported to the financial intelligence unit (FIU) and CERT-In. The probing team noted that stolen funds comprised 45% of the $500 million WazirX holding.
Rise of Crypto Crime
Elsewhere, the Liminal team claimed that the WazirX multi-sig wallet had been created outside the Liminal platform. The Liminal stated that its infrastructures, including the wallet, assets, and platform were not under attack.
The contrasting report from Liminal and WazirX sparked heated debates on social media, with experts sharing their findings on the attack. A statement from the co-founder of WazirX, Nischal Shetty, confirmed that the crypto exchange is working to recover the stolen funds.
The executive stated that the WazirX team has contacted over 500 crypto exchanges to block any transaction of identified addresses. He explained that the WazirX team needed support to recover the stolen assets.
Based on the ongoing investigation, Shetty claimed that the stolen funds were transferred through various platforms. Due to the damages caused by the attack, the WazirX team is launching a bounty program to reward individuals and companies who will support the recovery of stolen funds.
The executive confirmed that the bounty program was part of the recovery plan and bring the criminals to justice. Currently, WazirX is working with security experts to trace the movement of the stolen funds.
The crypto exchange will update on the progress of the ongoing recovery. In the meantime, the WazirX appreciates the support of the Web3 enthusiast during the investigations. The disgraced crypto exchange is conducting a thorough investigation to assess the damages caused by the attack.
Also, WazirX is contemplating an effective approach to recover the stolen funds. The crypto exchange encouraged the crypto community to cooperate and find solutions that foster the growth of the digital sector.
The WazirX $230 million hack ranks the second largest this year. Earlier in May, hackers drained $305 million from the renowned centralized exchange DMM.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at [email protected] if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. CreditInsightHubs is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
