In Crypto world, India has faced its largest-ever crypto theft, with approximately ₹2,000 crore (around $230 million) stolen from a wallet linked to WazirX hacked, a major player in the crypto arena. This incident, which occurred on July 18, 2024, has made headlines in the crypto news and raised significant concerns about the security of digital assets.
How hacker theft $230 million from WazirX
The theft didn’t happen overnight. The attack was meticulously planned over several days, beginning around July 10. The cybercriminals targeted the WazirX crypto wallet, which, despite having multi-level authentication, was compromised. This shows how even advanced security measures can sometimes fall short in the crypto market cap world.
To obscure their tracks, the thieves employed Tornado Cash, a crypto mixing service. Tornado Cash is akin to a financial mixer in the crypto world, it helps mask the source and destination of funds. The perpetrators deposited around $1,080 worth of cryptocurrency into their wallet using this tool. By doing so, they managed to hide their identity, which is crucial in the highly volatile world of crypto prices.
On July 18, the day of the theft, the criminals stole the staggering sum of $230 million. They didn’t keep it all in one place but instead split the funds into smaller amounts and distributed them across various wallets. This involved approximately 2,000 transactions, highlighting the sophisticated nature of the operation.
Most of the stolen assets 95% were parked in three wallets that are not currently linked to any crypto exchange. This strategic move means the stolen funds are effectively frozen and cannot be used without revealing the thief’s identity. As a result, the funds remain in limbo, and the crypto wallet containing them is under close surveillance.
Monitoring the Stolen Funds
Currently, the stolen funds are being monitored by forensic experts. The criminals face a significant hurdle: to utilize the stolen cryptocurrency, they must convert it into traditional fiat currency like rupees or dollars. This conversion would expose their identity, making it easier for authorities to track them down.
WazirX will gift $23 million whoever help in returning back stolen cryptos.
In response to the massive breach, WazirX has introduced a bug bounty program in which WazirX is going to pay $23 million whoever help WazirX finding solution or tracking Hacker’s next step. This initiative aims to recover the stolen funds by offering rewards to individuals who help uncover vulnerabilities or track down the stolen assets. By leveraging the expertise of cybersecurity professionals and the global crypto community, WazirX hopes to address the breach and strengthen its security measures.
What is Cryptocurrency?
Cryptocurrency is a form of digital money like Bitcoin, Ethereum etc. that uses cryptography for security and operates independently of traditional banking systems. Transactions are recorded on a decentralized ledger called the blockchain. The world of cryptocurrency, including popular assets like Solana crypto, offers numerous opportunities but also comes with inherent risks. The recent WazirX hack underscores the need for robust security protocols in the crypto market.
The cryptocurrency market is vast, with a market cap reaching several trillion dollars. This growth reflects the increasing interest and investment in digital currencies. However, as the market expands, so do the risks, making it crucial for exchanges and users to remain vigilant.
The WazirX hack is a stark reminder of the importance of safeguarding digital assets and staying informed about developments in the crypto arena. As the investigation continues and the bug bounty program unfolds, the crypto community remains hopeful for a resolution to this unprecedented theft.
