WazirX, India’s largest cryptocurrency exchange, has suspended withdrawals following a significant hacking incident.
The Mumbai-based platform confirmed the breach in a statement posted on X (formerly known as Twitter), revealing that the attack occurred early on July 18, during European trading hours. WazirX, known as “India Ka Bitcoin Exchange,” primarily serves the Indian market.
WazirX CEO Nischal Shetty expressed his deep concern in a post on X, stating, “This is a difficult time for everyone. I’ve been unable to sleep or eat since the incident. But that does not matter. What matters is our customers and we understand that. We’re tirelessly working on next steps. We need more time to figure a solution to the problem of stolen assets. We’ll keep you updated on a regular basis as we navigate this difficult time. Stay strong.”
The security breach, labeled a “force majeure event” by WazirX, has reportedly resulted in a loss of $230 million. The exchange noted that they are actively working to recover the funds, having already blocked some deposits and reached out to concerned wallets for assistance. In its statement, WazirX assured users that they are engaging top resources to aid in the recovery effort.
Reports indicate that WazirX has lost nearly half of its reserves, which stood at approximately $500 million according to its June proof-of-reserves declaration. Cyvers, a blockchain security firm, estimates that the theft from WazirX’s multi-signature wallet ranks among the largest cryptocurrency heists in recent years.
WazirX’s competitors, CoinSwitch and CoinDCX, have reassured their customers that their funds remain secure. CoinDCX CEO Sumit Gupta tweeted, “Our wallet security remains robust.” Ashish Singhal, co-founder and CEO of PeepalCo (the holding firm of CoinSwitch), advised crypto investors to exercise caution amid potential market volatility.
Media reports, citing blockchain expert Elliptic, suggest that hackers with ties to North Korea may be behind the attack. The breach reportedly involved the leakage of a private key, allowing unauthorized access to a secure multi-signature wallet holding numerous assets.
Earlier this year, WazirX separated from the major global exchange Binance following a high-profile dispute. Binance founder Changpeng Zhao announced the termination of operations with WazirX after failing to resolve ownership conflicts, which had been ongoing since Binance’s 2019 declaration of acquiring WazirX.
WazirX’s recent hacking incident highlights the ongoing security challenges faced by cryptocurrency exchanges, emphasizing the need for robust security measures and regulatory oversight in the rapidly evolving digital asset market.
