Major Hack on WazirX: North Korean Exploiter Converts $230 Million Stolen Crypto into Ether

Bitcoin and SHIB are trading at a 30% discount on WazirX following a significant hack that resulted in $230 million worth of user assets being stolen. The exchange cited a data discrepancy with a custodial platform as the cause of the breach. However, prominent figures in the Indian crypto community are skeptical of this explanation.

The North Korea-linked hacker has converted the majority of the stolen assets into ether, totaling $200 million. This conversion is typically done to use mixing services like Tornado Cash, which help obscure transaction trails and facilitate money laundering.

The exploit has severely impacted WazirX’s liquidity and token prices, with the exchange’s WRX token plummeting 40% in the past 24 hours. WazirX attributes the breach to a mismatch between a digital interface and a major crypto wallet, even though five signers from the exchange were supposed to secure the wallet holding user assets.

The hacker drained over $100 million in shiba inu (SHIB) and $52 million in ether, among other assets, from a compromised multisig wallet. This heist accounted for over 45% of the total reserves WazirX reported in June 2024, shattering hopes of a quick recovery for users.

In response to the breach, WazirX has temporarily paused crypto and fiat withdrawals. Many in the Indian crypto community are criticizing the exchange’s security measures and compliance protocols, questioning the effectiveness of having multiple signers if such a breach could still occur.