In a startling turn of events, Indian crypto exchange WazirX has halted trading after a devastating $230 million exploit. The hack, which occurred on July 18, compromised the exchange’s private key, allowing attackers to drain its wallets. As a result, trading has been temporarily paused, causing unease among users.
WazirX announced a bold recovery initiative, offering a 10% bounty (up to $23 million) for the recovery of the stolen funds and up to $10,000 for information that helps freeze the assets. The evidence suggests that the notorious North Korean Lazarus Group is behind the attack, raising doubts about the recovery prospects since assets stolen by this group are rarely retrieved.
The exchange’s wallets lost over $100 million in Shiba Inu tokens and millions more in MATIC, PEPE, USDT, and GALA tokens. Most of these assets have already been converted into ether by the hackers, further complicating recovery efforts.
Despite the grim situation, WazirX is conducting thorough forensic data examinations and security audits, striving to ensure user safety and restore normal operations. The exchange has also doubled the initial reward after consulting with blockchain investigator ZachXBT, highlighting the critical need for actionable intelligence.
While ZachXBT has pointed out the challenges in recovering funds from the Lazarus Group, there’s still a glimmer of hope. Previous efforts have seen partial success, as in the recovery of $30 million from the infamous $600 million Axie Infinity hack in 2022. WazirX remains committed to its recovery efforts, urging cybersecurity and blockchain experts to join the mission to protect the integrity of the crypto ecosystem.
