Web3 Security Firm Cyvers Reports $234.9M Hack From WazirX Safe Multisig Wallet

Web3 security firm Cyvers reported via a tweet post that $234.9 million from the Safe Multisig wallet of a popular Indian crypto exchange Wazirx

Crypto exchange WazirX announced that it had been hacked, hours after a Web3 security firm reported that over $234.9 million was moved from the Safe Multisig wallet of a popular Indian crypto exchange to a new address, with each transaction being funded through Tornado Cash.

Cyvers announced the suspicious transactions in a tweet on August 4. The tweet included a screenshot of the transactions, which showed that they were being sent to a new address (0x7099…) from the Safe Multisig wallet (0x68…). The transactions were valued at $234,970,653 at the time of the tweet.

🚨ALERT🚨Hey @WazirXIndia,Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH network.A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash.The suspicious… pic.twitter.com/4sajAwd4Hb

— cyvers.io (@cyversio) August 4, 2023

The Web3 security firm noted that each transaction’s caller was funded by Tornado Cash, a decentralized protocol that enables users to make private transactions.

Initially, several reports indicated that the transactions were part of the internal financial activities of the WazirX team. However, the team later addressed the reports and confirmed that the hack attack claims were indeed true.

The WazirX team reported that one of their multisig wallets had experienced a security breach. The team stated that they were actively investigating the incident to determine the extent of the breach and secure the platform.

To ensure the safety of users’ assets, INR and crypto withdrawals were temporarily suspended. The WazirX team requested the community’s patience and understanding during this time and promised to provide further updates as the investigation progressed.

📢 Update: We're aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding.…

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No statement has yet been released by WazirX CEO Nischal Shetty regarding the hack. The incident has sent shockwaves through the crypto community, raising concerns about the security of funds on the exchange. Users are anxiously awaiting further details and reassurances from the WazirX leadership.

WazirX token price actionFollowing this hacking incident news, the trade price of $WRX token crashed 14% within a couple of hours.

Now, it will be interesting to see the price action of the $WRX token from this level.

A couple of years ago, WazirX was operating under the control of Binance, but a conflict resulted in a significant dispute between the WazirX CEO and the Binance CEO. After that dispute, Binance terminated support for Wazirx token, which further caused a significant downfall in the trade price.

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