WazirX has launched a bounty program looking to recover digital assets worth over $230 million lost in a cyber attack on 18 July 2024. The Indian crypto exchange had halted deposits and withdrawals, after the company reported the cyber theft to the Indian regulators.
As a part of the bounty to recover the whopping $230 million, WazirX said on 21 July 2024, that it would give rewards of up to $10,000 worth of USDT for actionable intelligence that leads to the freezing of the funds.
Furthermore, the company has offered 10% of the recovered amount as a white hat incentive, which totals to $23 million. “This reward will be disbursed only after and subject to the successful receipt of the stolen amount by WazirX,” the company specified.
The bounty program will run till October 2024.
The irony with Indian 🇮🇳 exchanges is that hackers can withdraw funds from the exchange, but legitimate exchange users cannot withdraw their own tokens or hold in self custody. WTH. @CoinDCX @WazirXIndia @WazirXCares @CoinSwitch #BTC #WazirXhacked #Wazirx @cryptoamanclub pic.twitter.com/PwFGNBN8cG
— Chandrashekhar B (@shekharbhujbal8) July 19, 2024
EXPLORE: Stacks (STX) Price Move Fuels 99BTC BRC-20 Past $2.5M Raised
Will WazirX be Able To Restore Confidence In Its Platform?
After launching the bounty program, the company apparently received a positive response from the white hacker community. Founder and CEO of WazirX wrote on X, “We’re glad to see such a great response from the white hacker community to help us with stolen asset recovery. If the community gets together, even the hardest problems can be solved.”
He added, “In the meantime, we’re working on figuring the withdrawal process, we will inform as soon”
With over 16 million users, India’s largest cryptocurrency exchange suffered a huge security breach, with millions worth of tokens being transferred. The most notable tokens being ETH, PEPE, SHIB, MATIC & USDT.
WazirX’s multisig Ethereum wallet, which is a critical component of the company’s operations, was compromised. It was swiftly found that the attack was linked to North Korean hackers, who targeted WazirX’s multi-signature wallets. The North Korean hackers exploited a discrepancy between the interface of Liminal, a digital asset security platform, and the actual transaction data.
The breach has significantly impacted the platform’s ability to maintain 1:1 collateralization of assets, prompting immediate and robust recovery efforts.
WazirX’s bounty program is a global call to action, but the question remains, will WazirX be able to recover stolen funds?
Read more: Indian Crypto Exchange WazirX Suffers Security Breach: Hackers Steal Over $230m
Key mistakes made by WazirX worth noting:
1. Half of user funds stored in a single hot wallet.
2. Transactions on a compromised wallet were unnoticed for 8 days.
3. No clarity on insurance or safe funds.
Indian exchanges have been under the pump for quite some time. It's… pic.twitter.com/15DOaCRI5S
— Trader Naman (@namantrader) July 22, 2024
The incident has been reported to the Indian Computer Emergency Response Team (CERT-In) and the Financial Intelligence Unit (FIU).
Chainalysis Report Finds Increase In Illicit Actors Turning To Crypto To Launder Money
“In 2024, money laundering in crypto encompasses all crime — not just that which is inherently tied to the crypto ecosystem,” the Chainalysis report released in July 2024 stated. “In 2024, money laundering in crypto encompasses all crime — not just that which is inherently tied to the crypto ecosystem.”
According to the report, crypto is increasingly being used to launder funds. However, the funds are not related to blockchain crimes, such as darknet market or ransomware operations. Crypto laundering now includes proceeds from various off-chain crimes, such as narcotics trafficking and fraud.
EXPLORE: 16 Best Penny Crypto to Buy Today 2024
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed