WazirX has suspended trading on its platform as the exchange can no longer maintain 1:1 collaterals with customer assets.
WazirX, a prominent Indian crypto exchange, was hit by a significant security breach last week. The breach, which targeted its Ethereum Safe Multisig Wallet, resulted in the loss of over $230 million of customer assets. In response, WazirX took immediate action, pausing all withdrawals and halting trading on the platform.
The exchange is now conducting a thorough investigation into the incident, offering a 10% white hat recovery reward to anyone who can help identify the hacker.
WazirX Pauses Trading
WazirX posted on X that it had halted trading on its platform to safeguard customers’ funds. Due to the enormous amounts the hacker stole, the exchange can no longer process customer trading requests.
The announcement explained the hack’s effect on the company’s functionality: “The cyber attack theft has impacted our ability to maintain 1:1 collaterals with assets, and we’ve temporarily paused trading.”
“We’re conducting thorough forensic data examination and security audit procedures and working to enable withdrawals soon. User safety remains our top priority,” the firm added, revealing that trading will resume as soon as possible.
WazirX Announces 10% Bounty.
Following last week’s hack, WazirX has actively tried to recover the stolen assets. As the exchange announced on Friday, it reported the breach to the Financial Intelligence Unit (FIU) and The Indian Computer Emergency Response Team (CERT-in). Additionally, WazirX has contacted over 500 exchanges across the globe to block the addresses associated with the hacker.
Further, WazirX has announced a bounty program to help recover the stolen funds. First, there will be a $10,000 reward for any individual or firm that helps to identify, track, and provide actionable intelligence that helps to freeze the $230 million the exchange lost from the hacker.
Interestingly, WazirX offers to reward anyone who facilitates the recovery of the stolen funds with 10% ($23 million) out of it. As stated by the exchange, it will release the $23 million reward only after the exchange successfully recovers the stolen funds.
Amidst the ongoing hack investigation, many fraudsters have tried to exploit WazirX users even more by impersonating the exchanges’ official accounts and sharing fake links. WazirX has also warned its users to be alert and not fall victim to such exploits.