WazirX Battles Cyberattack: Bounty Program Announced

WazirX Launches Bounty Program to Recover Stolen Funds

Indian cryptocurrency exchange WazirX has announced the launch of a bounty program to aid in the recovery of stolen funds following a major hack.

Immediate Response

WazirX has initiated prompt measures, including filing a police complaint and reporting the incident to the FIU and CERT-In. It is also collaborating with over 500 exchanges to blacklist addresses associated with the stolen funds.

Bounty Program and Investigations

WazirX co-founder Nischal Shetty stated the exchange is establishing a bounty program to incentivize individuals and organizations to freeze or recover the stolen funds. They are working with specialized groups tracking cryptocurrency flows and analyzing data to determine the extent of the breach.

The exchange is also partnering with forensic specialists and law enforcement to identify and apprehend the perpetrators. The hack resulted in a loss of approximately $235 million, making it the second-largest hack of a centralized exchange in recent history. Crypto sleuth ZachXBT estimates the primary hacker still holds over $104 million.

Incident Details

On July 18, 2024, WazirX experienced a hack that led to the loss of over $230 million in assets. The attack targeted a multisig wallet secured by Liminal, requiring multiple signatures for spending.

Exploiting a vulnerability in Liminal's interface, the attackers gained control of the wallet and primarily targeted Ethereum (ETH) and ERC-20 tokens. They stole 15,298 ETH and exchanged other assets like Shiba Inu (SHIB), Polygon (MATIC), and Pepe Coin (PEPE), acquiring a total of 59,097 ETH, valued at $206.7 million. Users are concerned about the recovery of their funds.

Potential Market Impact

A massive ETH sell-off could significantly impact Ethereum's price. The sudden influx of a large amount of ETH into the market could create selling pressure, driving prices down. However, investors often seize such opportunities to acquire assets at a discount. A similar situation occurred when the German government sold 50,000 BTC, causing prices to drop but subsequently recover due to investor accumulation.

Conclusion

WazirX, India's leading crypto exchange, has initiated a bounty program to recoup the funds stolen in the recent $235 million hack. The exchange is working diligently with law enforcement and collaborating with other exchanges to recover the stolen assets. While the potential liquidation of 59,097 ETH could impact the market, the overall sentiment remains focused on restoring security and recovering lost funds.