Crypto Exchange WazirX Hit With Security Breach With USD 235 Million Said to Be at Stake, Withdrawals, Deposits Stopped

WazirX, one of the largest crypto exchanges, said on Thursday that the security of one of its multi-signature wallets has been breached. About $240 million (about Rs 1,965 crore) has been suspiciously sent from this exchange to a new address linked to the controversial crypto mixer platform, Tornado Cash.

WazirX was informed about the matter through a post on the social media platform X by security firm Cyvers. WazirX has a Statement “We have discovered that the security of one of our multi-signature wallets has been breached. Our team is investigating this,” it said. WazirX has blocked all deposits and withdrawals on its platform. Cyvers reported that the address to which the funds were sent from WazirX has already converted PEPE, GALA and USDT tokens into Ether. It shared a screenshot showing that a large amount of money has been transferred in three transactions.

Gadgets360 contacted Cyvers regarding this but it is not known how a multi-signature wallet became the target of such an attack. These wallets require two or more private keys or signatures from co-signers to authorize a transaction. Many users of WazirX have raised questions about the security of funds on the exchange. The exchange has not confirmed the amount sent to the suspicious address. WazirX has said in a post on X, “Thank you for your patience and understanding. We will keep you informed of updates.” WazirX has more than 1.6 crore users.

Recently, the US Federal Trade Commission (FTC) had warned of the rise of romance scams targeting the crypto community. The FTC had said that people should be avoided who lure you into online romance and ask you to invest money in investments, especially cryptocurrency. The FTC had reminded that investments in crypto cannot guarantee a fixed profit. In such scams, fraudsters find their victims through dating apps and pretend to romance them. These scammers lure their victims with high returns and ask them to invest in fake crypto assets and disappear after receiving the money.