A cyber attack on the Indian cryptocurrency exchange WazirX resulted in the theft of cryptocurrencies worth over 2000 crores (234.9 million USD). The incident occurred on the morning of July 18 and has become a major topic of discussion across media platforms.
Timeline of Events
Michael Pearl, the vice president of the cybersecurity firm Cyvers, claimed that he alerted WazirX co-founder Nischal Shetty about the wallet attack on the morning of July 18. Initially, Shetty did not believe it. According to Pearl, his team noticed unusual activity on one of the wallets, leading to the discovery of a major hack. Pearl stated that there was no response from WazirX for the first 30 minutes after reporting the suspicious activity.
Attack Methods
Analysis of the cyber attack showed that the hackers used a malicious smart contract functioning like a time bomb. The fraudsters transferred significant sums, a part of which was moved through Tornado Cash - a service that hides the origin of the funds. Michael Pearl noted that Cyvers could have helped prevent the attack if WazirX had cooperated with them earlier.
Consequences and Conclusions
According to Michael Pearl, recovering the stolen funds would be very difficult. At best, around 25% could be recovered through bounty programs. The issue is exacerbated by the overall trend of a 900% increase in attacks on centralized exchanges. The WazirX incident has caused significant resonance in India's cryptocurrency community.
The WazirX hack highlights the importance of timely security measures and the need to cooperate with professional cybersecurity firms. This event serves as a reminder that protecting digital assets requires constant vigilance and proactive threat prevention efforts.
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