WazirX Data Breach: Rivals Assure Investors About Fund Safety After Crypto Firm Suffers Alleged Data Breach

WazirX was allegedly breached on Thursday, days before Finance Minister Nirmala Sitharaman will present the Union Budget for FY 2024-2025.

Written by Radhika Parashar, Edited by David Delima | Updated: 18 July 2024 18:34 IST

WazirX Data Breach: Rivals Assure Investors About Fund Safety After Crypto Firm Suffers Alleged Data Breach

Photo Credit: Unsplash/ Pierre Borthiry

Highlights

The deposit and withdrawal services of WazirX remain halted for now
WazirX has not updated users about the safety of their funds
Indian crypto circle advised to be cautious amid upcoming volatility

Indian crypto exchange WazirX informed its users about a security breach on Thursday, that reportedly led to suspicious movement of funds worth $234.9 million (roughly Rs. 1,965 crore) into a Tornado Cash-linked wallet. Many crypto investors in India have expressed apprehension about the potential loss of user funds. WazirX's rivals in India, including CoinDCX, Giottus, and CoinSwitch, have assured their users that their funds are safe. Earlier on Thursday, WazirX stated that it was investigating the incident and is yet to provide additional information about the alleged breach.

Other crypto firms have warned investors that the market may experience some volatility in the aftermath of the alleged WazirX breach. The founders of some of these crypto exchanges have asked investors to be mindful about their financial decisions in the coming days. CoinSwitch CEO Ashish Singhal, CoinDCX Co-Founder Neeraj Khandelwal, and Giottus CEO Vikram Subburaj asked crypto investors to remain calm after WazirX acknowledged that it was investigating the alleged data breach.

The government has remained sceptical about embracing the cryptocurrency sector, which is currently worth $2.36 trillion (roughly Rs. 2,36,000 crore). It is highly volatile and governments around the world are concerned that including crypto in existing financial systems could end up disturbing monetary stability because of constantly fluctuating prices.

Why Crypto Trading Volumes on Centralised Exchanges Are Tumbling

The alleged WazirX hack has come to light days before Finance Minister Nirmala Sitharaman will present the Union Budget for FY 2024-2025. The crypto sector in India has been urging the government to revise the crypto tax regime and introduce incentives to promote the sector. This incident could dampen the odds of any positive development that could have been expected from the government as part of this budget.

Reactions expressing concerns and disappointment are pouring in on social media around WazirX's mega hack. Some have also noted changes in crypto prices following the attack.

WazirX exploiter has sent I hacked WazirX tokens to @VitalikButerin, this is not a theft but a statement.

hope a deal works out between both the parties, this does not look good for Indian ecosystem.

hash: https://t.co/5NQJ0xPKJF pic.twitter.com/MCHuFQB26S
— yash.shm :arrow_up_small: (@yashjhade) July 18, 2024

As per the Latest POR report, Wazirx was Hodling $503 Million worth of Crypto.

Hack is worth $230 Million as of now.

If this amount is not recovered, can become a big problem for the exchange. pic.twitter.com/OAGa0KQJRB
— Aditya Singh (@CryptooAdy) July 18, 2024

Shiba Inu's price has dropped amid concerns of a SHIB sell-off following the WazirX hack. The hack has raised fears of increased selling pressure on the token, leading to a decline in its value. This incident highlights the potential risks and vulnerabilities in the… pic.twitter.com/KcfwknlLWo
— Ricards (@Ricardswo) July 18, 2024

The deposit and withdrawal services of WazirX were halted earlier on Thursday, and remained unavailable at the time of publishing this story.

Meanwhile, cybersecurity firm Arkham Intel initiated a bounty to identify a vulnerability related to this hack on WazirX. The reward offered by Arkham was 5,000 ARKM, and the platform later announced that a user on X (@ZachXBT) solved the bounty.

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“@ZachXBT submitted definitive evidence of a KYC-linked deposit address used by the exploiter to receive funds from the WazirX exploit. This fulfills one of the criteria of the bounty - ‘Identifying a KYC centralized exchange deposit'. This information will be shared with the WazirX team,” the firm said in a post on X.

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Further reading: Cryptocurrency, WazirX Hack, CoinDCX, CoinSwitch, Giottus

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More