WazirX Faces $230 Million Hack, Impacting Major Altcoins Including Shiba Inu, Ethereum, and MATIC

• WazirX, one of the largest cryptocurrency exchanges in India, faced a major security breach early this morning amounting to $230 million.
• The exchange has temporarily halted both fiat and crypto withdrawals to ensure user funds are safeguarded.
• According to Lookonchain, over $230 million worth of altcoins, including significant amounts of SHIB, ETH, and MATIC, were stolen from WazirX.

WazirX Faces Massive $230 Million Security Breach, Halts Withdrawals

Major Security Breach at WazirX

WazirX has confirmed a significant security breach this morning, with attackers siphoning off $230 million in various cryptocurrencies. The exchange promptly acknowledged a security vulnerability in their multi-sig wallets. An official statement from WazirX elaborated, “We are aware of a security breach in our multi-sig wallets. Our team is actively investigating the matter.” The immediate response included suspending all withdrawals to protect user funds from further risk.

Details of the Stolen Assets

Blockchain analysis platform Lookonchain revealed the extent of the hack, highlighting that the stolen assets included 5.43 trillion Shiba Inu (SHIB), 15,298 Ethereum (ETH), 20.5 million MATIC, 640.2 billion PEPE, 5.79 million USDT, 135 million GALA, and over 100 other assets. Such a massive heist has inevitably caused concern among users and stakeholders. Etherscan records confirm that the perpetrators have begun liquidating the stolen assets, potentially leading to a downturn in the altcoin market.

WazirX’s Market Position in India

Post the imposition of access restrictions by the Indian government on Binance and other foreign exchanges at the end of last year, WazirX emerged as a dominant player in the Indian crypto market. The exchange saw its trading volume surge more than threefold within days of the restrictions. This latest security incident is likely to impact its reputation and operational dynamics significantly. Historically, WazirX has had its share of controversies, including a notable dispute with Binance. In 2019, Binance announced the acquisition of WazirX, but in 2022, Binance’s then-CEO, Changpeng Zhao, stated that the deal was never finalized.

Conclusion

This substantial security breach at WazirX underscores the persistent vulnerabilities within the cryptocurrency ecosystem. While the exchange’s swift action might protect user funds temporarily, the long-term impact on its market standing and user trust remains to be seen. Stakeholders and users are advised to monitor developments closely as WazirX works towards resolving the issue and potentially enhancing its security measures in the future.