Recently, the cryptocurrency exchange WazirX experienced a major breach resulting in the loss of $230 million in ETH tokens. Suspicions are now arising about possible insider involvement.
Breach Events
Justice for WazirX Users (JfWU) claims that inconsistencies in the breach point to possible collaboration within the organization. They believe that the intricacies of the breach and the way funds were compromised imply more than just an external cyberattack.
Security Analysis
WazirX customers on the social media platform X have bombarded CEO Shetty with pleas, threats, and insults. Many are worried that the current period of rising crypto prices will be over by the time withdrawals are enabled again. JfWU identified several issues in WazirX’s security protocols. Due to the complexity of the breach and how the funds were compromised, these anomalies might point to internal collaboration within the company rather than just an external hacking incident.
Calls for Investigation
JfWU raised concerns about the crypto exchange’s decision to store half of the user’s funds in a single cold storage wallet. They also highlighted that the hacker appeared to deliberately target GALA tokens, which led to the cold storage sweep. According to JfWU’s analysis of the situation, making such precise changes to the cold wallet’s smart contract would likely require insider assistance. JfWU has now advised affected users to file criminal complaints so that the Central Bureau of Investigation (CBI) can conduct an official investigation into the matter.
This breach has highlighted serious issues with WazirX’s security protocols, causing significant concern among the exchange’s users. The question of insider involvement requires further investigation and action.
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