India’s largest crypto exchange WazirX has been hit by a major hack that resulted in the loss of $235 million, including $100 million worth of Shiba Inu coins (SHIB).
The breach on one of WazirX’s multisignature wallets was confirmed via an announcement on X (formerly Twitter), leading to a temporary halt on INR and crypto withdrawals to ensure the safety of remaining assets.
Cybercriminals responsible for this hack targeted large quantities of Shiba Inu and Ether, causing significant market disruptions. According to blockchain analytics firm Arkham Intelligence, the stolen SHIB, worth $102.1 million, has already been sold off on Uniswap.
In the wake of the hack, SHIB has experienced substantial market losses, plunging 8.35% in value within 24 hours. ETH also saw a dip but remained relatively stable due to higher liquidity and ongoing interest in potential ETFs in the U.S.
Bitcoin’s trading pairs with the Indian rupee have suffered too, with substantial discounts noted in WazirX compared to U.S. markets. This heightened market anxiety among Indian traders.
Mudit Gupta, Chief Information Security Officer at Polygon Labs, described the incident as a “methodical and organized attack,” hinting at the involvement of sophisticated actors, possibly even state-backed groups such as North Korea’s Lazarus Group.
Renowned on-chain sleuth ZachXBT believes this hack aligns with the patterns of Lazarus Group operations. He has received a bounty from Arkham for providing evidence linking the exploiter to a KYC-verified deposit address.
What next?
This incident could have broader implications, potentially provoking stricter regulations from the Indian government, which has already imposed hefty taxes on crypto transactions.
WazirX’s reputation has taken a significant hit, with many customers voicing their displeasure over delayed responses and ineffective customer service. Rival exchanges in India are now seizing the opportunity to assure users of their security measures in an attempt to attract new customers.
The ramifications of this exploit will likely reverberate through the Indian cryptocurrency landscape, affecting investor confidence and regulatory approaches alike.
