Indian Cryptocurrency Exchange WazirX Loses $230 Million in Cyberattack

Indian cryptocurrency exchange WazirX has reported a significant loss of over $230 million in a recent cyberattack. The company stated that the attack was beyond their control but they are actively working to recover the funds.

According to a preliminary report posted on their website, WazirX revealed that the cyberattack targeted one of its multisig wallets that utilized the services of Liminal’s digital asset custody and wallet infrastructure. The wallet had six signatories responsible for transaction verifications, with approval required from three WazirX signatories and one Liminal signatory for a transaction to go through.

The company also mentioned that they had whitelisted destination addresses to enhance security, but the cyberattack still managed to exploit a discrepancy between the data displayed on Liminal’s interface and the actual transaction contents. This led to a transfer of wallet control to the attacker.

Liminal, on the other hand, clarified in a post on X that their platform was not breached and their infrastructure, wallets, and assets remain safe. They stated that the compromised wallet was created outside of the Liminal ecosystem and that WazirX wallets created on their platform remain secure.

The incident comes at a time when cryptocurrency theft by hackers is on the rise, with TRM Labs reporting a significant increase in stolen cryptocurrency over the past year. The total amount stolen more than doubled from the first half of 2023 to the first half of 2024, reaching $1.38 billion.

As WazirX continues its investigation and recovery efforts, the cybersecurity and cryptocurrency communities will be closely monitoring the situation to see how the exchange responds to this significant breach.