Cryptocurrency exchange WazirX is grappling with a massive hack of $235 million, reportedly executed by hackers affiliated with North Korea, according to insights from Elliptic, a blockchain analytics company.

An analysis by Elliptic has connected the attack to methodologies typically associated with the North Korean cyber group Lazarus. The deployment of TornadoCash, a cryptocurrency privacy tool, to mask transactions mirrors strategies observed in past Lazarus-led cyber breaches.

CEO Deddy Lavid of Cyvers Alert has emphasized parallels with Lazarus Group's operational patterns, expressing concerns about the group's potential role in the exploitation of WazirX.

Hack Unveils with Precision

The hack unfolded with meticulous planning, initiating its trajectory about 8 days before its implementation, as outlined by Mudit Gupta, the Chief Information Security Officer at Polygon Labs. Gupta described the attack as methodical, pointing towards the Democratic People's Republic of Korea (DPRK) as the probable instigator.

The hackers reportedly capitalized on vulnerabilities in WazirX's multi-signature wallet, upgrading it to a malicious version that enabled the unauthorized transfer of over $235 million in various cryptocurrencies.

Following the breach, a wide range of cryptocurrencies were discovered to be stolen, including approximately $96.7 million worth of Shiba Inu (SHIB), $52.6 million in Ethereum (ETH), $11 million in Polygon's MATIC, and $7.6 million in memecoin Pepe. The hacker's wallet currently holds $72.4 million in assets.

Response and Recovery Measures

In response to the breach, Arkham, a prominent entity in crypto security, has announced a reward of 5000 ARKM coins to encourage the identification of the hacker or the retrieval of the stolen funds. This initiative aims to stimulate efforts to address the situation.

ZachXBT, a well-known crypto detective, has already furnished evidence towards identifying the hackers, showcasing the unity of the community in combatting such incidents.

Lazarus Group has garnered notoriety for its persistent targeting of the cryptocurrency realm, with estimates from Chainalysis indicating illicit gains exceeding $3 billion over the past five years.