This will be interesting to follow up.
I doubt that the bounty program will yield any results because if it hasn't by now, the chances are small that something will change in the future. The only chance I see is if the hackers decide to give the money back, but at this point, it's unlikely to happen.
Topic: WazirX hacked, $234M+ stolen (Read 368 times)
legendary
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I do not have the link but I remember once I was reading an resourceful article where the investigated the reason of hacking crypto assets and human error was at the top.
I have no doubts that human error is the key factor in the majority of hacking cases, but it's hard not to wonder how that can happen when so many millions are at stake. An obvious answer is often an inside job.This will be interesting to follow up.
I doubt that the bounty program will yield any results because if it hasn't by now, the chances are small that something will change in the future. The only chance I see is if the hackers decide to give the money back, but at this point, it's unlikely to happen. legendary
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From what I understand, hack didn't happen because some issue with Ethereum but because of the human error. They simply signed the trasnaction they shoulnd't have.
I do not have the link but I remember once I was reading an resourceful article where the investigated the reason of hacking crypto assets and human error was at the top. There are employees in a business who do not know how to handle crypto securely. That's a lot of money to loss.Here is the update from the WazirX hacked, they are offering a bounty program,
https://wazirx.com/blog/wazirx-bounty-program/
This will be interesting to follow up. https://wazirx.com/blog/wazirx-bounty-program/
Quote
White Hat Recovery Bounty: Assist in the recovery of the stolen funds with 10% of the recovered amount as a reward. We are offering 10% (maximum up to $23 Million, i.e., 10% * $230 Million = $23 Million) as White Hat Bounty to the WazirX hacker in exchange for the return of the funds to the following wallet address:
ERC20 Wallet Address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf
ERC20 Wallet Address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf
That is an absolutely huge loss for any company let alone a crypto exchange as they will have to endure a bumpy road (or even bankruptcy) as customer try to withdraw in fear of their assets being frozen as with what happened to Cryptopia.
I was not aware of any hack until I read this thread. After a quick search online it seems in June 2024 they declared around $500 million total holdings therefore if $230 million was stolen it would accounts for around 45% of their total holdings.
I was not aware of any hack until I read this thread. After a quick search online it seems in June 2024 they declared around $500 million total holdings therefore if $230 million was stolen it would accounts for around 45% of their total holdings.
The government used to regulate all the transactions on WazirX and used to impose tax on it. My only concern is that the government used to take daily taxes, but now that there is a hack, will the government compensate the traders and investors also?
Not sure where you are getting this from, does the government ever "compensate" for something that they tax on? SEBI is not the governing body here, in fact nobody is, something that you have to deal with yourself since you got your hands dirty trading crypto. That is how it is all over the world and India is no exception just that the government has to act like a mafia and ask for 30% taxation on whatever capital gains you get.Forget about regulation, the recent budget does not even have a mention about crypto while this exchange got hacked a few days back. The government here does not care about crypto at all, they just want to get their pockets filled and pay the votebank with the taxpayers money.
What I believe is that the owners situation is grave at this point after the hack, inside job or not. Therefore they are trying to get any means necessary to get things back in status quo. The bug bounty was bullshit, black hat hackers have no morals, how did they even expect the money to come back. They should go for the legal route but that is where the situation will get complicated and hence they are trying to solve it with this 55-45 thing.
WazirX finally announced the plan on how they gonna manage this situation and its quite an "interesting" one, to say the least. So, even though not all users were affected with the hack, they decided to share the damage across all of their users or as they call it "socializing the loss". 
In short, people will get 55 % of their crypto available immediately to withdraw/trade/whatever and 45% will be converted in some sort of stablecoin and locked for God knows how long.
In short, people will get 55 % of their crypto available immediately to withdraw/trade/whatever and 45% will be converted in some sort of stablecoin and locked for God knows how long.
WazirX will “rebalance” customer portfolios on its platform, returning only 55% of their holdings while locking the remaining 45% in USDT-equivalent tokens. This will also impact customers whose tokens were not directly affected by the breach, with the company stating that “users with 100% of their tokens in the ‘not stolen’ category will receive 55% of those tokens back.”
The security breach resulted in the theft of over 200 different cryptocurrencies, with the bulk of the losses concentrated in several popular tokens including Shiba Inu (SHIB), Ethereum, Polygon’s MATIC, and the meme cryptocurrency Pepe, according to blockchain data analysis provided by third-party explorer Lookchain.
The security breach resulted in the theft of over 200 different cryptocurrencies, with the bulk of the losses concentrated in several popular tokens including Shiba Inu (SHIB), Ethereum, Polygon’s MATIC, and the meme cryptocurrency Pepe, according to blockchain data analysis provided by third-party explorer Lookchain.
WazirX doesn't insure its users' funds. Perhaps Indian regulators would want to learn a lesson or two from this unfortunate incident and require exchanges next time to secure insurance for their customers' funds if they want to get a license.
Since crypto is heavily regulated on Indian market, I am surprised that there was no regulation set in order to force exchanges to insure the funds, similar to what exchanges in Japan are forced to do if they want to get the license. Maybe I'm paranoid, but I think most of these big hacks had an insider complicit.
You are not the only one who thinks the same. 
WazirX is a very popular exchange for all the Indian people. WazirX does its marketing all over the Indian audience and has a huge user base. It is sad to see that these types of breaches and hacks are happening with reputable exchanges. The main reason why many people joined this exchange is that it was legalized by the government of India. The government used to regulate all the transactions on WazirX and used to impose tax on it. My only concern is that the government used to take daily taxes, but now that there is a hack, will the government compensate the traders and investors also?
How regulated is crypto in India, were there no announcements of some restrictions or did I misremember something? That's why it's strange to me that such an amount is involved, too much money in something that has a lot of restrictions in the business.Maybe I'm paranoid, but I think most of these big hacks had an insider complicit.
The government used to regulate all the transactions on WazirX and used to impose tax on it. My only concern is that the government used to take daily taxes, but now that there is a hack, will the government compensate the traders and investors also?
LOL! Why should the government do that? Taxes aren't insurance. Them paying taxes to the government is a matter of obligation. It isn't a payment for financial protection to their users should any untoward incident like a hack occur.
WazirX doesn't insure its users' funds. Perhaps Indian regulators would want to learn a lesson or two from this unfortunate incident and require exchanges next time to secure insurance for their customers' funds if they want to get a license.
Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?
WazirX is a very popular exchange for all the Indian people. WazirX does its marketing all over the Indian audience and has a huge user base. It is sad to see that these types of breaches and hacks are happening with reputable exchanges. The main reason why many people joined this exchange is that it was legalized by the government of India. The government used to regulate all the transactions on WazirX and used to impose tax on it. My only concern is that the government used to take daily taxes, but now that there is a hack, will the government compensate the traders and investors also?
What that surprised me is that it is an ethereum multisig wallet. I have not heard of multisig wallet hack before until today and that made me to really be surprised.
Maybe hack us not the right word to use when a multiSig wallet is compromised. There would definitely be a conspiracy between the parties involved. Whenever there's a news of hack, my first instinct says it's insiders.Is there a specific reason why it was switched to ETH?
Use Tether or other stable coins the assets would be frozen. They are becoming smarter.It is attractive, 10% of 235 million is a large amount.
When do we start having people rendering this kind of services in the forum. 
So the program is very attractive, a 10% rewards for someone, that can recover the funds and return it to the wallet that they have put into the program.
Most likely we might see some groups here trying their best in ethical way because the bounty is very big and it could be one of the biggest bounty so far that we have heard.
I don't see how anyone else will be able to return those coins, regardless of whether it's legal or not. However, they are now in the hands of someone who is technically well-versed, they are not ordinary users who hold unprotected private keys.
Here is the update from the WazirX hacked, they are offering a bounty program,
https://wazirx.com/blog/wazirx-bounty-program/
So the program is very attractive, a 10% rewards for someone, that can recover the funds and return it to the wallet that they have put into the program.
Most likely we might see some groups here trying their best in ethical way because the bounty is very big and it could be one of the biggest bounty so far that we have heard.
https://wazirx.com/blog/wazirx-bounty-program/
Quote
White Hat Recovery Bounty: Assist in the recovery of the stolen funds with 10% of the recovered amount as a reward. We are offering 10% (maximum up to $23 Million, i.e., 10% * $230 Million = $23 Million) as White Hat Bounty to the WazirX hacker in exchange for the return of the funds to the following wallet address:
ERC20 Wallet Address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf
ERC20 Wallet Address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf
So the program is very attractive, a 10% rewards for someone, that can recover the funds and return it to the wallet that they have put into the program.
Most likely we might see some groups here trying their best in ethical way because the bounty is very big and it could be one of the biggest bounty so far that we have heard.
Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?
I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.
Not only that, but this platform is the fastest growth in India and Binance tried to acquire it in the past before leaving the Indian market, but it seems that the Indian market is growing quickly as another Indian platform called Coindcx bought Bitoasis, which indicates growth in the number of Indian users.I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.
Is there a specific reason why it was switched to ETH?
With the difficulty of finding a decentralized bitcoin mixer and trust in central mixing services, I think Tornado Cash will be a good choice for them.
Is there a specific reason why it was switched to ETH?
Probably so they could launder their funds through Tornado Cash. Also, many of these tokens like PEPE would not be considered a good store of value so it makes sense to dump them for ETH. They also don’t want their stablecoins frozen, so they would need to exchange those also.
and there could be a bank run once they resume withdrawals. Plus the longer normal operations are halted will likely cause more anxiety to people.
They cannot even resume withdrawals and trading, unless they miraculously recover the funds. Now that they have been hacked and lost a substantial amount of funds, the assets remaining is surely way smaller than liabilities, so there is no way they can resume normal operations. Stopping withdrawals is not just to protect customer funds, but because they cannot cover withdrawals if many people want to withdraw their money, and that means bankruptcy.Is there a specific reason why it was switched to ETH? With robust protection funds like those of Bitget, users shouldn't be concerned. Alternatively, they can diversify to a platform without a hacking record, like the one I mentioned earlier.
Lol, shiller. Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?
My guess is that the money stolen was not only their own money but their client's as well, and when you take into cosndieration size of Indian market and the fact that its their biggest crypto exchange then that amount is not surprising at all. I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.
Not the first and certainly not the last time such a big amount has been stolen from a crypto exchange so we can say its business as usual. 
News about Indian exhange WazirX being hacked is all over the twitter and looks like attacker withdrew several altcoins and then swapped them to ETH. Still no cofnirmation from the xchange about being hacked so its best to take this news with the grain of salt until official confirmation or more details.
Uh man, quite unknown exchanges (at least for others, outside of India) had more than $234M, is the exchanging business so very profitable?I know there are always mistakes, but how can someone who is capable of earning 230 million not take care of that money.
They have launched a bounty for the missing funds.
WazirX launches bounty program to recover stolen assets
With the crypto sector in India already in a bad shape, some users are speculating that the hack might be a inside job. None of us have any proof but it is a common theory, while the owners are trying to make the thing work, the government is trying its best to keep it down and thus they resort to stealing the money of the people who trust them. It can be the truth or a utter cock and bull story.
The crypto legal framework in India is not even in the conception era, it literally does not exist. If things work out properly and they are able to track the hackers it will be a landmark case in history.
WazirX launches bounty program to recover stolen assets
With the crypto sector in India already in a bad shape, some users are speculating that the hack might be a inside job. None of us have any proof but it is a common theory, while the owners are trying to make the thing work, the government is trying its best to keep it down and thus they resort to stealing the money of the people who trust them. It can be the truth or a utter cock and bull story.
The crypto legal framework in India is not even in the conception era, it literally does not exist. If things work out properly and they are able to track the hackers it will be a landmark case in history.
Can you give a broad explanation about this?
Nothing to explain really as I thought that smiley/laughing emoticon at the end will make it obvious that it was just a joke but I guess I was wrong. Jump to: