Indian Crypto Exchange WazirX Faces Major Security Breach Resulting in $230 Million Loss

Indian cryptocurrency exchange WazirX is grappling with a significant security breach, leading to the theft of over $230 million. The breach, acknowledged by WazirX on social media, has prompted a temporary suspension of all withdrawals to secure remaining assets.

According to WazirX’s initial findings, the compromised wallet involved the utilization of Liminal‘s digital asset custody and wallet infrastructure since February 2023. The wallet in question required approvals from multiple signatories – both from WazirX and Liminal – to authorize transactions.

The attackers behind the breach exploited a vulnerability that allowed them to gain control of the wallet by manipulating transaction data, circumventing the security measures set in place.

WazirX emphasized that despite having robust security protocols, the hackers successfully breached their systems. The exchange is actively working to prevent further losses and recover the stolen funds.

Liminal, in their statement, clarified that their system remained uncompromised and that the affected wallet was external to their platform, affirming the safety of all wallets within their ecosystem.

Multi-signature wallets, like the one breached in this incident, require multiple private keys to authorize transactions. In this case, the hackers managed to bypass these security measures, leading to the substantial loss.

In the aftermath of the breach, WazirX has committed to resolving the issue and ensuring the recovery of the stolen funds. Other Indian crypto platforms, including CoinSwitch, CoinDCX, and Mudrex, have reassured their users of the safety of their assets in response to this incident.

Ashish Singhal from CoinSwitch, Sumit Gupta from CoinDCX, and Edul Patel from Mudrex have all reiterated that their platforms’ security remains intact and unaffected by the WazirX breach.