Dear Friends,
The major news once again from the Indian Crypto Exchange WazirX this time.
I have given the links on the articles that we have discussed on WazirX hack. Please check back if you have missed them.
The users of WazirX has got an email from WazirX Exchange team that they have now halted all the trades in their platforms.
Earlier WazirX has only halted the withdrawals on cryptos and INRs in the platform soon after the hack.
While they have explained in their email that what are the steps that they have initiated is that - they have filed a complaint on the cyber crime department, intimation to the Finance Intelligent Unit of the Government of India, to execute a thorough forensic audit, intimate 500+ exchanges to to block the wallet address, also announced a bounty program for 20% value to the stolen asset worth of $23 million as a white hat bounty.
They also stated that with the hack, they cannot able to maintain the 1:1 collateral as well.
The investors of WazirX would be in a serious trouble with this announcement.
We also knew that there was a cyber attack on WazirX and more than $ 230 billion worth of cryptos were stolen from one of its multisig wallets.
Usually all the crypto-exchanges, as they are dealing with heavy worth of cryptos, they will keep low amount in their software wallets and heavy holdings only in the cold wallets with multi signature wallets.
The wallet service has been offered by liminal services.
What it might have experienced is that the liminal might have clicked a link which resulted a script to execute, which will check a payload data block.
The script might have worked the payload block, that would change according to the terminals.
While doing transaction, through the payload, the hackers might have taken control of the wallets. And they have completely drained it.
It is considered that this hack styles resembles with North Korean hackers.
Many experts have expressed that the recovery chances for WazirX is so slim and the hackers would not accept the bounty program as well considering the previous incidents.
Soon after the hack, this assets were changed into Ethereum. But the wallets are closely monitored and they can't easily transact from wallet.
The hackers may use the chip mixers. But now, there are technologies to track this too.
But, the hackers do have a chance to use it with DEX exchanges.
They can also manipulate the markets as well. They can able to easily pump and dump any coins as well.
Though the efforts to recover the stolen cryptos are on and the thorough audits to be done on how it has been hacked, what are the technical snags present; the investors find it so difficult to get their investments back.
I am not sure, whether WazirX will go for bankruptcy notice as it is not making profit due to the stringent Crypto Tax by the Government. The only option is left before WazirX is to mobilise funds and do the operations to make some profits again. But this situation is most unlikely to happen?
Let's wait for all the developments in this regard.
But this awakens the awareness among the crypto asset protection in a greater way among all the crypto investors community globally.
