WazirX announced on Twitter that it has filed a police complaint and is taking legal action in response to a significant cyber attack.
The company has reported the incident to the Financial Intelligence Unit (FIU) and CERT-In, and is working with over 500 exchanges to block the compromised addresses. Many exchanges are cooperating in the effort to aid WazirX’s recovery.
Recovering the Stolen Funds is a Priority
The company’s immediate actions focus on tracing the stolen funds, recovering customer assets, and analyzing the cyber attack.
WazirX is taking part with forensic professionals and law enforcement to become aware of and understand the ones responsible. They assured the community that they are doing everything feasible to protect customer belongings and will provide updates as the scenario progresses.
This statement follows WazirX’s decision to halt withdrawals after discovering a breach in one of its wallets. Analysts suspect that the attack may also have been executed with the aid of North Korean hackers. The breach resulted in the loss of over $230 million.
The affected wallet was managed by five signatories from WazirX and one from the digital asset custody service Liminal.
According to WazirX, a discrepancy between the data displayed on Liminal’s interface and the actual transaction contents may have been exploited by the attackers.
What did the community comment on the hack?
The community waits with wrapped attention to see how WazirX deals with the stolen funds and what are their plans for recovering them.
Some users commented on the post asking the Plan B in case the funds are not recovered. Another user wrote that the WazirX team can offer a 10% bounty to the hackers and end the situation with a good negotiation. While the other questioned on why would the hackers be interested in a negotiation?
Nevertheless, the community also showed support for the exchange with patience.
Hackers have been Practising for Days?
Mudit Gupta, Chief Information Security Officer of Polygon Labs, found out that the hackers had been practising the hack for at least 8 days. Gupta defined that the attackers upgraded the multisig to a malicious version that subsequently allowed them to empty the wallet.
WazirX’s response involves not only immediate recovery efforts but also long-term strategies to enhance security and prevent future breaches. The company is committed to keeping its users informed and ensuring the protection of their assets as it navigates through this difficult situation.