- WazirX has raised its White Hat recovery incentive by 10%, bringing the total reward value to $23 million.
- The increase comes in the aftermath of a significant cyber attack that led to the loss of over $230 million from a multi-signature wallet.
- ZachXBT, a prominent blockchain investigator, influenced the decision to up the bounty to 10% from its initial 5%, a gesture aimed at bolstering the recovery efforts.
WazirX enhances its White Hat bounty to $23 million following a $230 million cyber heist, aiming to enlist global cybersecurity experts and white hat hackers in the fund recovery mission.
WazirX Augments Bounty Rewards in Response to Massive Cyber Attack
In a strategic move to expedite the recovery of stolen assets, WazirX has announced the increment of its White Hat bounty program to 10%, translating to a potential reward of up to $23 million. Initially, the bounty was set at 5% of the stolen amount, or $11.5 million. The adjustment follows feedback from ZachXBT, a respected figure in blockchain investigations, and aims to attract a more extensive network of cybersecurity specialists, white hat hackers, and blockchain analysts to assist in recovering the embezzled funds.
Details of the Bounty Program and Its Objectives
The updated bounty program is divided into two targeted efforts. The first, known as the “Track and Freeze” initiative, promises up to $10,000 USDT for information that can successfully immobilize the compromised funds. The second part, referred to as the White Hat recovery mission, offers a robust reward of 10% of the total recovered assets to those who can help in recapturing the stolen cryptocurrency. The bounty initiative will be active for a duration of three months, although adjustments in its timeline may be made based on progress and situational demands.
Technical and Security Insights Post-Heist
WazirX’s founder, Nischal Shetty, has publicly clarified that the cyber attack was not a result of phishing but involved a sophisticated breach involving multiple security keys. The incident required three out of four signatures from separate hardware devices maintained by WazirX and an additional sign-off from their custody provider, Liminal. Preliminary forensic evaluations indicate no compromise of WazirX’s devices, and an external audit is underway to affirm this finding comprehensively.
Business and Operational Measures Taken
Following the breach, WazirX has temporarily suspended trading activities to stabilize the platform and ensure a 1:1 ratio between tokens and actual assets. A report has been filed with the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In). Furthermore, over 500 exchanges have been contacted to block the addresses linked to the heist. The platform is committed to conducting a thorough security review and a complete forensic data assessment to resolve the vulnerabilities and resume normal operations. Users have been assured that withdrawal functionalities will be reinstated in the near future.
Conclusion
WazirX’s proactive stance in increasing the White Hat bounty underscores their commitment to rectifying the high-profile security breach and restoring trust in their platform. By engaging global cybersecurity talent through this incentivized program, they aim to recover the substantial lost assets and fortify their security measures against future attacks. This comprehensive approach reflects a significant step towards transparency and operational resilience in the face of unprecedented challenges in the cryptocurrency landscape.
