WazirX Hacked for $230M, Largely in SHIB, as Elliptic Says North Korea Behind

[ABCbits]

~
Although i don't understand why most loss caused by stolen SHIB, is SHIB very popular in India? Your opinion is greatly appreciated.

It's probably just a coincidence but that's a lot of SHIB stored on their wallet.

But the news also state these.

The exploiter is actively selling the stolen tokens, including $100 million worth of shiba inu

The stolen funds account for over 45% of the exchange's $500 million holdings, which it disclosed in a June report.

So if i understand it right, 20% of their holding consists of SHIB.

[Stompix]

Question though, Indian are taxing crypto right? Will it happen that the government are going to pay or are they liable to pay as per law? Maybe we can argue that since we are paying tax, somewhat they could held accountable as well?

You're also paying property tax you're paying VAT,  is the government paying you back when your laptop gets stolen or your account is drained by someone? That's what insurance is for, and that's why FDIC is for but have you seen any exchange actually insuring funds?

If they were, then why were they paid? it led to the loss of millions of dollars. If this is how they deal with customers’ money, then the customers’ data must have been hacked.

Remember when FTX which a billion company didn't even have proper accounting and much of the meetings involved partying and smoking pot?

[Faisal2202]

It's only been about 2 months since DMM exchange got hacked with $230m loss. Although i don't understand why most loss caused by stolen SHIB, is SHIB very popular in India? Your opinion is greatly appreciated.

What a coincidence that DMM also lost $230 M and Wazirx also lost the same amount. And also in the form of Shib mostly but they also lost in other types of funds as well. It is sad that the users have to bear the loss now because I read a news where they said, the funds of customers are at risk and AFAI remember, the WazirX exchange has been hacked before.

And I don't know if people would be using this exchange anymore, especially Indians, because the world and old users from India understand that the WazirX exchange is not a reliable exchange anymore after the last hack and there were several controversies about it as well. In short, it is sad that NK is causing that much loss to the crypto industry.

[ABCbits]

It's only been about 2 months since DMM exchange got hacked with $230m loss. Although i don't understand why most loss caused by stolen SHIB, is SHIB very popular in India? Your opinion is greatly appreciated.

What a coincidence that DMM also lost $230 M and Wazirx also lost the same amount.

I just noticed i stated wrong amount. The correct amount for DMM hack was over $300m. Anyway, my point are both exchange hacked within short interval and both of them had similar amount of losses.

[taufik123]

-snip-
And I don't know if people would be using this exchange anymore, especially Indians, because the world and old users from India understand that the WazirX exchange is not a reliable exchange anymore after the last hack and there were several controversies about it as well. In short, it is sad that NK is causing that much loss to the crypto industry.

What is certain is that the number of users will decrease and many will move to larger exchanges that better guarantee the security of their investments. if there was also a controversial problem before, then it is only necessary to see Wazirx go bankrupt slowly.

WazirX mentioned that "many exchanges" are "cooperating" with them and explained immediate plans that include "tracking stolen funds, recovering customer assets, and conducting a more in-depth analysis of the cyberattack

[electronicash]

-snip-
And I don't know if people would be using this exchange anymore, especially Indians, because the world and old users from India understand that the WazirX exchange is not a reliable exchange anymore after the last hack and there were several controversies about it as well. In short, it is sad that NK is causing that much loss to the crypto industry.

What is certain is that the number of users will decrease and many will move to larger exchanges that better guarantee the security of their investments. if there was also a controversial problem before, then it is only necessary to see Wazirx go bankrupt slowly.

WazirX mentioned that "many exchanges" are "cooperating" with them and explained immediate plans that include "tracking stolen funds, recovering customer assets, and conducting a more in-depth analysis of the cyberattack

unless they can refund the users of their loss. when binance was hacked and they make it appear like they re refunding the users, it gave the users satisfaction like the exchange is secure since they can refund however large the amount was lost.users never left. but its cool to see there are exchanges cooperating with them and most likely going to freeze the tokens when its going inside their exchange.

if they can cooperate with each other, i don't see any reason why binance and coinbase and other exchanges cooperating as well.

[Stompix]

So they're kind of *******
https://x.com/NischalShetty/status/1815684469296144807

We’re figuring various directions that can possibly help enable the platform deposits/withdrawals/trading.
~
1. The impact of the over $230M cyber attack is on the digital assets of our customers

Yeah, he definitely needed to clear that up, it was customers's funds, but he managed to commit it was customer funds in their keeping which they would normally be liable for.
As for the complete suspension, anyone with an account there, is the entire site frozen?

[taufik123]

unless they can refund the users of their loss. when binance was hacked and they make it appear like they re refunding the users, it gave the users satisfaction like the exchange is secure since they can refund however large the amount was lost.users never left. but its cool to see there are exchanges cooperating with them and most likely going to freeze the tokens when its going inside their exchange.

if they can cooperate with each other, i don't see any reason why binance and coinbase and other exchanges cooperating as well.

Refunds are important because customers certainly don't want to lose their money due to a bad security mistake.
Like Binance and several other large CEXs that have reserve funds to overcome this kind of risk, so user funds will remain safe.

If Wazirx can get past this and make all customer funds safe then they can be trusted again.
But if it turns out that some funds are missing, then there is no hope of rising or even becoming more normal.
About some cooperation to get assistance is still a discussion, whether it will be fully restored or not.

[Jating]

And they outlined a bounty hunters that can help them recover the funds, it's 10% of the total money that has been hacked,

Program Details:
White Hat Recovery Bounty: Ethical hackers and experts are encouraged to assist in the recovery process. WazirX offers a reward equivalent to 10% of the recovered amount, subject to successful recovery and verification. This could potentially amount to $23 million, making it one of the largest bounties ever offered in the crypto industry. This offer extends to the WazirX hacker as well, in exchange for the return of the funds to the specified ERC20 wallet address: 0xf381d876ce4807d1e752cf9dcdba695f312611bf

https://wazirx.com/blog/wazirx-announces-bounty/

So let's see if this bounty program will attract white ethical hackers to recovery what they've lost. it's a big reward to be honest, so for sure there will be some attempts from the other side of the spectrum to help them and then get that $23 million reward.

[Kemarit]

Oh well, if they can pay the bounty hunters with that amount of money, maybe they can still pay little by little those customers. That should be their utmost concern right now. Although you can appreciate the efforts they put on the bounties and hopefully someone will step up and help them to recover some if not all the money.

And then they will have to bolster their security as well and learn from the hack itself. Otherwise, they could end up in bankruptcy if another big attack hits them on the future if they don't patch their security in the future.

[ABCbits]

And they outlined a bounty hunters that can help them recover the funds, it's 10% of the total money that has been hacked,

--snip--

The offer is interesting, although it's hard to imagine the hacker being careless which lead to returning funds. On top of that, the hacker always swap hacked asset for something else, which makes it more complicated.

[NotATether]

What a coincidence that DMM also lost $230 M and Wazirx also lost the same amount. And also in the form of Shib mostly but they also lost in other types of funds as well. It is sad that the users have to bear the loss now because I read a news where they said, the funds of customers are at risk and AFAI remember, the WazirX exchange has been hacked before.

And I don't know if people would be using this exchange anymore, especially Indians, because the world and old users from India understand that the WazirX exchange is not a reliable exchange anymore after the last hack and there were several controversies about it as well. In short, it is sad that NK is causing that much loss to the crypto industry.

North Korea hackers are only concerned about stealing money to build more rockets, weapons, guns, bombs, etc.

But as for WazirX, I'm not so sure how anyone can feel sorry for them. Because they failed to implement a SAFU fund for their users as an insurance against getting hacked, and now the result is their customers bearing the burnt of the loss.

[Faisal2202]

I just noticed i stated wrong amount. The correct amount for DMM hack was over $300m. Anyway, my point are both exchange hacked within short interval and both of them had similar amount of losses.

Thank you for the correction. Regarding the timing of hacks, I don’t believe hackers typically consider such intervals. If they are different hackers, they likely won’t prioritize such factors. However, if a hacker identifies a good opportunity, such as relaxed or softened authorities or a system loophole, they might wait for the right moment, for example, when a platform has raised enough funds, to execute their attack.

According to the news, Tarun Mangukiya stated that hackers manipulated the WazirX exchange to upgrade their security implementation. Why did WazirX decide to upgrade it? One thing to consider is that the same group, NK's Lazarus group, hacked both exchanges. Perhaps when DMM was hacked, WazirX realized it was time to enhance its security measures, and that’s how they might be manipulated. The news also says that, hacker take 8 days to practise this hack or maybe waiting for the right opportunity.

[Kemarit]

What a coincidence that DMM also lost $230 M and Wazirx also lost the same amount. And also in the form of Shib mostly but they also lost in other types of funds as well. It is sad that the users have to bear the loss now because I read a news where they said, the funds of customers are at risk and AFAI remember, the WazirX exchange has been hacked before.

And I don't know if people would be using this exchange anymore, especially Indians, because the world and old users from India understand that the WazirX exchange is not a reliable exchange anymore after the last hack and there were several controversies about it as well. In short, it is sad that NK is causing that much loss to the crypto industry.

North Korea hackers are only concerned about stealing money to build more rockets, weapons, guns, bombs, etc.

True, rouge nation, a whole government backing up their hacking group and then still find a way to circumvent the embargo with them and getting stronger by turning into hacking.

But as for WazirX, I'm not so sure how anyone can feel sorry for them. Because they failed to implement a SAFU fund for their users as an insurance against getting hacked, and now the result is their customers bearing the burnt of the loss.

They are a bigger exchange so it's really makes us wonder why the funds are not SAFU so that they can protect their customers. Now, maybe in the coming days we might be seeing cases filed against them in court in India for failing their customers and not giving back the money or pay them because it's their fault that their customers are not protected.

[TomPluz]

My big question, why North Korea? Does that country really have such dangerous intelligence resources? Or are such actions facilitated by their government? Everywhere I have read stories about the country's dictatorship and very limited state facilities which conclude that it is impossible for hackers to come from the civilian population.

North Korea's government is very much involved with the hacking business and I am sure it is their government behind many successful hacks for the past many years in the cryptocurrency industry. Just because the country is on financial dire strait does not mean that it can not invest on technology and people for hacking purposes...in fact it invested billions of dolalrs to be a nuclear carrying country and make its military strong in the region. North Korea know that there is a big business in hacking crypto platforms and that it's why it is concentrating its time, effort on this. For them, the rewards are so worth the risks. I would not be wondering to hear more news of North Korean hackers getting more successful on what they do in the coming years.