- Second Phase of Fund Withdrawals
- Details of the Breach and Its Consequences
- Lazarus Involvement in the Incident
WazirX initiated the second phase of its fiat currency withdrawal procedure following a major breach that led to the pilferage of over $230 million in user assets.
Second Phase of Fund Withdrawals
On September 3, WazirX initiated the second stage of its fiat currency withdrawal procedure, allowing users to withdraw up to 66% of the aggregate INR value deposited on the platform. This step is significant in the context of the ongoing restructuring of the company in Singapore.
Details of the Breach and Its Consequences
The breach that occurred in July resulted in a substantial loss of assets, amounting to $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH). Legal counsel has indicated that it is improbable for clients to fully recover the lost funds. It is predicted that, in the best-case scenario, around 55% to 57% of the initial assets will be recovered.
Lazarus Involvement in the Incident
On September 2nd, the perpetrator initiated the transfer of the stolen Ether using the cryptocurrency mixer Tornado Cash, involving about $6.5 million worth of Ether in 16 transactions on the Ethereum network. The attack on WazirX is thought to have been carried out by the North Korean cybercriminal organization Lazarus, renowned for its involvement in laundering over $1 billion in illicitly obtained funds. Additionally, Lazarus has attracted significant attention from global sanctions.
The incident with WazirX underscores the importance of enhancing security measures in the cryptocurrency industry to prevent such occurrences in the future.
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