The Indian Crypto Exchange WazirX Loses $234 Million in Suspicious Transactions
Today, WazirX, one of the leading Indian crypto exchanges, reported a security breach resulting in the loss of $234 million due to suspicious transactions. The exchange has temporarily suspended withdrawals to address the situation.
Security Breach and Suspicious Transactions
- Blockchain security platform Cyvers Alerts uncovered multiple suspicious transactions linked to WazirX’s Safe Multisig wallet on the Ethereum network.
- Approximately $234.9 million was moved to a new address, with each transaction funded by Tornado Cash.
- The wallet “0x04b2” has already dumped $7.6 million worth of PEPE tokens and exchanged GALA and USDT for ETH.
Withdrawn Funds and Asset Dumping
- Shiba Inu (SHIB) tokens accounted for over $100 million of the withdrawn funds, followed by $52 million in Ether (ETH), $11 million in Matic (MATIC), and $6 million in Pepe (PEPE).
- The hacker has initiated the process of dumping these assets, posing a significant risk to the affected parties.
Impact on WazirX and Regulatory Scrutiny
- WazirX’s total holdings, as per the latest Proof of Reserve report, amounted to just above $502 million prior to the security breach.
- The hack represents a substantial setback for WazirX, given the regulatory scrutiny it faces and the declining trading volumes attributed to the 1% TDS imposed on transactions.
- Previously, India’s Financial Intelligence Unit had criticized WazirX for non-compliance with local AML policies.
Hot Take: Protecting Your Crypto Assets
Given the recent security breach at WazirX and the resulting loss of funds, it’s crucial for crypto investors to prioritize the security of their assets. Here are some tips to help safeguard your crypto holdings:
Security Measures:
- Use hardware wallets or secure offline storage options to protect your private keys.
- Enable two-factor authentication (2FA) on your exchange accounts to add an extra layer of security.
- Avoid sharing sensitive information such as passwords or recovery phrases with anyone.
Due Diligence:
- Conduct thorough research before investing in any crypto platform or project to verify its legitimacy.
- Stay updated on the latest security practices and be cautious of phishing attempts or suspicious links.
Risk Management:
- Diversify your crypto portfolio to minimize risk and avoid allocating a significant portion of funds to a single asset.
- Consider using decentralized exchanges (DEXs) or peer-to-peer platforms for trading to reduce reliance on centralized entities.
By taking proactive steps to secure your crypto assets and staying informed about potential risks, you can enhance the safety of your investments in the volatile crypto market.
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