In a devastating blow to the Indian cryptocurrency scene, WazirX, a prominent crypto exchange, has fallen victim to a staggering $235 million hack. Web3 security firm Cyvers identified a series of suspicious transactions involving WazirX’s Safe Multisig wallet on Ethereum.
Nearly $235 million worth of assets from WazirX’s Safe Multisig wallet have been transferred to a new address, with each transaction funded by Tornado Cash, a decentralized protocol known for its private transactions. The new address has already converted the stolen funds, including Tether, Pepe, and Gala (GALA), into Ether.
Crypto investigator ZachXBT reported that the primary address involved in the hack still holds over $104 million worth of assets. This includes approximately $100 million in Shiba Inu, $52 million in Ether, and $11 million in Polygon. The wallet also contains $4.7 million in FLOKI, $3.2 million in Fantom, $2.8 million in Chainlink, $2.3 million in Fetch.ai (FET), and a variety of other tokens.
In reaction to the security breach, WazirX has temporarily halted the withdrawal of cryptocurrencies and Indian rupees. The exchange announced via an X post that it is actively investigating the incident and will provide updates as the situation evolves.
This security incident occurs amidst an already challenging regulatory environment for cryptocurrencies in India. On March 21, the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issued compliance notices to several foreign crypto exchanges, including OKX, instructing them to cease operations for Indian users by April 30. Despite nearly four years of discussions, the Indian government has yet to establish a clear regulatory framework for the crypto market.
The hack of WazirX highlights the urgent need for stringent security measures and definitive regulations to protect investors and foster trust in India’s growing crypto market.
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