WazirX Vice President Rajagopal Menon on Thursday described as a “force majeure event beyond our control,” the cyber attack on one of its multisignature wallets resulted in a loss exceeding $230 million.
What Happened: In statement to Benzinga, Menon stated that the attack targeted a multisig wallet that had been utilizing Liminal’s digital asset custody and wallet infrastructure since February 2023.
The wallet’s security setup included six signatories – five from WazirX and one from Liminal – with transactions requiring approval from three WazirX signatories and a final approval from Liminal.
“Despite robust security features, including the Gnosis Safe multisig smart contract platform and Liminal’s whitelisting policy, the cyber attackers appear to have possibly breached such security features,” Menon stated.
He explained that the attack exploited a discrepancy between the data displayed on Liminal’s interface and the actual contents of the transaction.
The WazirX executive elaborated, “We suspect the payload was replaced to transfer wallet control to an attacker.”
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This mismatch between the information displayed and what was actually signed led to the unauthorized transfer of funds.
This incident marks another significant setback for the cryptocurrency industry, which has been plagued by high-profile hacks and security breaches in recent years.
WazirX has stated that they are “leaving no stone unturned to locate and recover the funds.”
The exchange has already taken steps to block certain deposits and has reached out to concerned wallets for potential recovery.
This development follows recent revelations by blockchain investigator ZachXBT, who identified that the exploiter had moved substantial amounts of cryptocurrency, including 5.43 trillion SHIB for 26,535 ETH valued at $92 million.
Lookonchain provided further details, reporting the theft of 15,298 ETH worth approximately $52.5 million, and 20.5 million MATIC valued at $11.24 million.
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