WazirX, a leading digital currency trading platform in India, recently halted all its trading operations following a security incident that led to the loss of approximately $230 million—almost half of its total reserves.
This Mumbai-centric trading hub shared through a tweet on a Sunday night that this digital breach severely compromised its capacity to sustain the essential proportional relationship between assets, casting doubt on WazirX’s solvency and its commitment to reimbursing its clientele fully.
Initially, WazirX paused withdrawals for its users earlier in the week after discovering unauthorized access to one of its high-security, multi-signatory wallets, which safeguarded cryptocurrencies worth a substantial fortune. This affected wallet was under the guard of six signatories, five aligned with the WazirX crew.
“The origination of the cyber attack was traced back to an inconsistency between the information shown on Liminal’s platform and the genuine details of the transaction,” the company cited earlier in the week.
In an endeavor to retrieve the stolen digital assets, WazirX publicized a reward program on Sunday, promising up to $23 million as bounty for assistance in recovering the assets.
Elliptic, a risk management framework, pointed out in their evaluation earlier this week that there seems to be a connection between the perpetrator and North Korea.
$230 million represents a significant portion of WazirX’s assets, as the company disclosed nearly $500 million in its proof-of-reserves report for June. This incident was declared by the exchange as an act beyond control.
Fellow Indian exchanges, CoinSwitch and CoinDCX, which have affiliations with WazirX for certain operations, assured earlier in the week that their clients were not affected by WazirX’s security mishap.
Compiled by Techarena.au.
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