According to Etherscan, Reports indicate that this compromise has transferred approximately $234.9 million worth of cryptocurrencies to a new address.
The incident has sparked concerns within the cryptocurrency community regarding the security measures employed by exchanges.
WazirX Exchange Hacked: $234.9M Compromised
The compromised funds were moved to a new address, and what has raised eyebrows further is the involvement of Tornado Cash in the transactions. Tornado Cash anonymizes Ethereum transactions by unlinking sender and receiver addresses. This involvement suggests an attempt to obfuscate the movement of funds and potentially launder them through mixing.
Cryptocurrency exchanges often face security breaches as hackers target their substantial digital asset holdings. The WazirX incident highlights the need for strong security measures like multisig wallets. Also, strict authentication protocols to safeguard user funds.
Source: X
In response to the breach, WazirX has assured its users that investigations are ongoing, and steps are being taken to mitigate the impact of the incident. They have pledged to enhance their security infrastructure to prevent future breaches and ensure the safety of user funds.
More About the WazirX Hack
It appears that WazirX India inadvertently updated their Safe Implementation Skeleton to a phishing version in the past week. The presence of the phishing smart contract on Etherscan suggests that a transaction was signed. Presumably under the guise of a legitimate upgrade, to execute this change.
Source: X
The incident may have arisen from the use of a deceptive phishing Safe App UI. This misleads all multisig owners involved in the authorization process, or potentially through compromised backend APIs. This oversight underscores the vulnerability of exchanges to sophisticated phishing attacks and the critical importance of stringent security protocols to prevent unauthorized modifications and protect user assets.
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