WazirX Crypto Exchange Faces Major Wallet Breach, Over Rs 1,964 Crore Withdrawn

WazirX said that its team is currently investigating the issue and that it has prompted a temporary halt on both INR and cryptocurrency withdrawals to protect customer assets.

WazirX further confirmed that the security concern is related to one of its Liminal multi-sig wallets.

Source : Bastian Riccardi/Unsplash

WazirX, a Mumbai-headquartered cryptocurrency exchange, has fallen victim to a major wallet breach, as over Rs 1,964 crore is said to have been transferred to a new address. The breach was identified by Web3 security firm Cyvers, which discovered “multiple suspicious transactions” linked to WazirX’s Safe Multisig wallet on the Ethereum blockchain.

According to Cyvers, approximately $234.9 million (roughly Rs 1,964 crore) was transferred from the wallet to a new address, with the transactions traced back to Tornado Cash, a decentralised protocol known for facilitating private transactions.

🚨ALERT🚨Hey @WazirXIndia, Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH network.

A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash.

The suspicious… pic.twitter.com/4sajAwd4Hb

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) July 18, 2024

How Did WazirX Respond?

After taking notice of the transfer, WazirX said that its team is currently investigating the issue and that it has prompted a temporary halt on both INR and cryptocurrency withdrawals to protect customer assets.

WazirX further confirmed that the security concern is related to one of its Liminal multi-sig wallets. "We appreciate your patience and support during this time," the exchange added.

📢 Update: It appears that the security issue involves one of our Liminal multisig wallets. Our team is actively working on the matter. Thank you for your patience and support. We'll keep you posted with further updates.

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024

The events have raised alarms in the crypto community, underscoring the risks associated with digital asset exchanges. 

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