Bitcoin and SHIB Experience 30% Loss on WazirX as Hacker Converts Stolen Funds to Ether

A cybercriminal associated with North Korea, who targeted the Indian cryptocurrency exchange WazirX, has converted the bulk of the stolen $230 million user assets into ether (ETH), totaling $200 million. The exploit had a significant impact on WazirX’s liquidity and the prices of listed tokens, with the exchange’s WRX token plummeting by 40% within the past 24 hours.

According to blockchain tracker Lookonchain, the exploiter currently holds more than 59,097 ETH, valued at $200 million based on current prices, along with an additional $15 million in various alternative tokens. Hackers often convert tokens to ether to utilize mixing services like Tornado Cash, which obscure transactional activities and facilitate money laundering.

As of the latest update, nearly all tokens listed on WazirX were trading at substantial discounts compared to their global and local prices, indicating poor liquidity and significant selling pressure. The bitcoin/rupee trading pair on WazirX experienced a 22% decline in the last 24 hours, contrasting with other local exchanges such as CoinDCX and Zebpay, where prices saw a mere 2% decrease. The shiba inu/rupee pair also dropped by 30%.

WazirX’s native WRX token suffered a 40% decline over the past day, while trading volumes on the platform surged to $8 million within the same period, a stark increase from the $2.2 million recorded on Wednesday. The security breach that hit WazirX involved a multisig wallet, resulting in the theft of over $100 million in shiba inu (SHIB) and $52 million in ether, among other assets. This breach accounted for more than 45% of the total reserves reported by the exchange in June 2024, dampening hopes of recovery among users.

The exchange attributed the exploit to a “mismatch” between a digital interface and a major crypto wallet, despite having five signers from WazirX on the wallet storing user assets. This explanation faced skepticism from some members of the Indian crypto community, with concerns raised about security practices and compliance on exchanges. Currently, both crypto and fiat withdrawals from WazirX have been temporarily suspended.