WazirX Faces Security Breach with $234.9 Million at Risk; Withdrawals and Deposits Suspended

Cyvers Reports Funds from WazirX Moved to Address That Has Swapped PEPE, GALA, and USDT Tokens for Ether

WazirX, a prominent Indian cryptocurrency exchange, confirmed a security breach affecting one of its multi-signature wallets on Thursday. The breach was initially flagged by Cyvers Alerts, a security firm that reported a substantial sum of $234.9 million (approximately Rs. 1,965 crore) being moved from the exchange to a new address associated with the controversial crypto mixer platform, Tornado Cash.

In response to the incident, WazirX issued an official statement acknowledging the breach: “We’re aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident.” The exchange has temporarily halted all withdrawal and deposit activities on its platform to contain the situation and prevent further unauthorized transactions.

According to Cyvers, the funds from WazirX were transferred to an address that has already converted PEPE, GALA, and USDT tokens into Ether. The security firm provided screenshots indicating that the transaction involved moving the funds through three separate operations. Cyvers classified the exploit as ‘critical,’ reflecting the severity of the breach and the potential risk to affected assets.

The involvement of Tornado Cash, a crypto mixer known for obfuscating transaction trails, has raised concerns about the potential for money laundering and further illicit activities. Tornado Cash has been a point of controversy due to its use in various high-profile hacks and thefts in the cryptocurrency space.

WazirX’s immediate response includes a comprehensive investigation to understand the extent of the breach and identify any vulnerabilities that may have been exploited. The suspension of withdrawal and deposit services is part of a broader effort to secure the platform and protect users’ funds during the ongoing investigation.

As the situation develops, both WazirX and Cyvers will likely provide further updates on the breach’s impact and any measures taken to address the incident. The crypto community and regulatory bodies will be closely monitoring the case, given the significant amount of money involved and the implications for the security and trustworthiness of cryptocurrency exchanges.