In its statement on X, the exchange confirmed that one of its multisig wallets was cyber-attacked and user funds were lost. This incident has reignited discussions about the security and regulation of the cryptocurrency ecosystem.

According to WazirX’s statement, the attack targeted one of the multisig wallets used by the exchange. Multisig wallets are designed to provide high security. In these wallets, more than one private key must be used to perform a transaction. However, in this attack, it appears that cyber criminals bypassed security measures, gained access to the wallet and transferred the cryptocurrencies in it.

Blockchain tracking company Elliptic suggested that North Korea-related hackers may be behind the attack. It is estimated that the amount of stolen funds reached approximately 230 million dollars, more than 45% of the total assets stated by WazirX in its June report. This raises concerns that the stock market may face a serious liquidity crisis.

Early data tracked by Lookonchain reveals that attackers are mostly focusing on popular memecoin Shiba Inu (SHIB) tokens. In addition to the SHIB token worth more than $100 million, Ethereum (ETH) worth $52 million, MATIC worth $11 million and Pepe (PEPE) token worth $6 million were also lost in the attack. Transaction history shows that the attackers quickly sold the stolen assets on decentralized exchanges like Uniswap.

WazirX temporarily stopped cryptocurrency withdrawals after the attack. The exchange also announced that the hacked multisig wallet was provided by digital asset custody company Liminal. This information raises questions about who is responsible for the attack and the adequacy of security measures.

Since WazirX is one of the important cryptocurrency exchanges operating in India, this incident also brings the regulatory debates in the country to the agenda again. The Indian government has been hesitant to impose strict regulations on the cryptocurrency industry. This attack could raise voices that regulators need to take stricter action.

The security vulnerability in WazirX once again revealed the security risks faced by the cryptocurrency ecosystem. This incident may raise concerns about the security of user funds, especially on decentralized exchanges (DEXs).

The attack also highlighted the need for cryptocurrency exchanges to invest in security infrastructure and take necessary measures to protect user funds. While multisig wallet attacks are not new in the cryptocurrency industry, this incident is a warning for the industry to reconsider its security protocols.

The cyber attack on WazirX was a serious blow to both users’ funds and the reputation of the cryptocurrency industry. This incident forces regulatory authorities and cryptocurrency exchanges to take steps to strengthen security measures and ensure the stability of the ecosystem. When choosing cryptocurrency exchanges, users should carefully evaluate their security history and the measures they implement.