July 19, 2024 at 02:07AM
Indian crypto exchange WazirX disclosed the loss of over $230 million in virtual assets in a cyber attack attributed to North Korea. The attack exploited a vulnerability to gain control of a multi-signature wallet. WazirX halted crypto withdrawals and initiated recovery efforts. Blockchain analytics firms suspect the stolen assets are being exchanged, and link the theft to North Korean actors. WazirX, with 16 million users, has faced regulatory and ownership disputes, including ties to Binance, which itself has been suspended in India for AML violations. India has yet to finalize its stance on cryptocurrency regulation. Regulatory clarity is desired for issues like security standards, risk management, and consumer protection.
From the meeting notes, the key takeaways are as follows:
1. WazirX, an Indian crypto exchange, suffered a cyber attack resulting in the loss of virtual assets estimated at over $230 million. The attack was linked to North Korea.
2. The attack targeted one of WazirX’s multi-signature wallets, exploiting a discrepancy between Liminal’s interface and the actual transaction data.
3. The wallet with six signatories, including five from WazirX team and one from Liminal, had security bypassed, allowing the attacker to gain control.
4. After the discovery of the attack, WazirX halted crypto withdrawals, blocked deposits, and reached out to wallet-owners for recovery assistance.
5. Blockchain analytics platforms such as Lookchain and Elliptic have been monitoring the stolen assets, with Elliptic concluding that the perpetrators are affiliated with North Korea.
6. WazirX, with approximately 16 million users, has faced regulatory challenges, including being suspended for anti-money laundering violations and having funds frozen during money laundering investigations.
7. Binance’s acquisition of WazirX in 2019 has raised ownership disputes, and WazirX has encountered difficulties with regulatory authorities in India.
8. India’s stance on cryptocurrency regulation remains undecided, with proposed legislation to ban or regulate cryptocurrencies being periodically presented.
It is important to note that regulatory intervention is anticipated in the cryptocurrency space in India, potentially focusing on security standards, risk management, and consumer protection.