WazirX Crypto Exchange Hit by $235M Hack: Funds Moved to New Address

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CONTENT

Web3 security firm Cyvers Alert detects suspicious transactions from WazirX’s Safe Multisig wallet on Ethereum. Hackers, funded by Tornado Cash, swap stolen USDT, PEPE, and GALA tokens for Ether.

In a significant blow to the cryptocurrency industry, Indian crypto exchange WazirX has fallen victim to a massive hack, resulting in the loss of approximately $235 million. The incident, detected on July 18, has sent shockwaves through the crypto community and raised concerns about the security of digital assets.

Web3 security firm Cyvers Alert first reported the breach on social media platform X, revealing that they had identified multiple suspicious transactions involving WazirX’s Safe Multisig wallet on the Ethereum blockchain. According to their findings, a staggering $234.9 million worth of funds were moved from the exchange’s wallet to a new address.

The attack’s sophistication is evident in the hackers’ use of Tornado Cash, a decentralized protocol known for facilitating private transactions, to fund each transaction. This move significantly complicates efforts to trace the stolen funds and identify the perpetrators.

In a swift maneuver, the hackers have already begun converting the stolen assets. The illicit funds, initially comprising Tether (USDT), Pepe (PEPE), and Gala (GALA) tokens, are being swapped into Ether, the native cryptocurrency of the Ethereum network. This conversion strategy may be an attempt to obfuscate the trail of stolen funds further.

The incident highlights the ongoing security challenges faced by cryptocurrency exchanges and underscores the importance of robust security measures in the rapidly evolving digital asset landscape. As investigations continue, the crypto community awaits further details and potential recovery efforts from WazirX and relevant authorities.

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