As a seasoned financial analyst with extensive experience in the cryptocurrency market, I find this situation surrounding WazirX and the FBI collaboration both intriguing and concerning. The cyberattack on WazirX, resulting in a substantial loss of over $230 million, is a stark reminder of the risks inherent in this industry.
Industry sources report that the US FBI has reached out to Indian cryptocurrency platform WazirX for assistance in probing a major cyberassault suspected of North Korean hackers’ involvement.
A confidant of WazirX revealed that international law enforcement bodies like the FBI aim to fortify their own crypto markets against potential disruptions. Their involvement will significantly enhance WazirX’s initiatives.
On July 18, an attack occurred, directly impacting one of WazirX’s multi-signature wallets, leading to a substantial theft of more than $230 million. This amount represents roughly 45% of the total funds held by the investors.
Nischal Shetty, the co-founder of WazirX, suspects that the Lazarus Group, a notorious cybercrime organization known for its complex attacks on cryptocurrency exchanges and reportedly backed by North Korea, could be potential suspects behind recent hacking incidents, although the exact perpetrators remain undetermined.
Despite the significant cyberattack, WazirX permitted uninterrupted trading for three consecutive days following the breach, resulting in a decrease of approximately 10-15% in the prices of major cryptocurrencies listed on their platform.
As a researcher, I would emphasize that maintaining the platform’s stability and preventing mass insolvencies were my primary concerns. Within the next week, an impartial forensic auditor is expected to provide additional information regarding the incident.
WazirX proposes a “shared loss mechanism” allowing most investors to recover approximately 55% of their investments following the incident. Users holding funds in Indian Rupee (INR) remain unaffected and can withdraw their full balances.
As a researcher delving into the intricacies of the Indian crypto market, I’ve come across the formidable hurdles that prevent comprehensive insurance coverage for this burgeoning sector. Simultaneously, I’ve underscored the immense potential of leveraging global law enforcement agencies’ expertise in recovery funds lost to illicit activities within this space.
WazirX is collaborating with Liminal, a company specializing in wallet infrastructure and digital asset safekeeping, to engage an independent auditor. Maintaining transparency and keeping stakeholders informed are top priorities for WazirX as they deal with the aftermath of this unexpected cyber incident.
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2024-07-29 19:01