WazirX Hacked: North Korean Lazarus Group Suspect Traces Found in $235 Million Theft
The cryptocurrency exchange WazirX in India has suffered a devastating hacker attack, resulting in losses estimated at $235 million. Blockchain data analysts have linked the attack to North Korean hackers, known for their sophisticated cyber-attack techniques. The incident has led WazirX to suspend cryptocurrency and Indian Rupee (INR) withdrawals.
Hacker Attack on WazirX Exchange from North Korea
On July 18, WazirX hacked and had to suspend withdrawals of cryptocurrencies and Indian Rupees following a hacker attack that led to the theft of approximately $234.9 million in digital assets. The attack involved the unauthorized transfer of funds from the Safe Multisig wallet of the exchange to a different address, containing over 200 digital assets, including Shiba Inu, Ether, Tether, Polygon, PEPE, and Floki.
Details of the WazirX hack done on the 18th
According to the Web3 security company Cyvers, an unauthorized actor carried out the attack by exploiting a vulnerability in the WazirX system. Tarun Mangukiya, co-founder of the payment platform Copperx, hypothesized that the hackers induced WazirX to update its Safe Implementation Skeleton with a phishing smart contract in the last eight days, leading the WazirX team to sign a compromised transaction.
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North Korean Involvement is suspected.
Elliptic, a blockchain forensics company, revealed that the attack shows typical patterns and techniques of North Korean hackers. A representative of Elliptic stated that the analysis of on-chain transactional behavior and other information led to suspicion of the involvement of North Korea.
Suspect of The Lazarus Group Connection
Even ZachXBT, a well-known cryptocurrency investigator, has supported this theory, indicating that the hack shows distinctive signs of an attack by the Lazarus Group, a notorious North Korean criminal organization. The Lazarus Group is known for its cyberattacks dating back to 2010 and for having terrorized the cryptocurrency sector since 2017, including the $600 million exploit of the Ronin Bridge.
The overall crypto market was not adversely affected by the cyberattack.
Popular among Indian cryptocurrency investors, the Shiba Inu [SHIB] meme coin saw a small decline in value around the time of the attack on July 18, but it has since increased by 8.07% over the previous seven days.
Best coins In almost the past week, the prices of Bitcoin [BTC] and Ethereum [ETH] have increased by almost 10% each.
The wallet address associated with the impacted WazirX was:
0x27fD43BABfbe83a81d14665b1a6fB8030A60C9b4.
WazirX hacked and Its Impact on Users
During the attack on WazirX, SHIB tokens worth over $100 million were stolen, causing a 10% drop in the price of the digital asset. The attackers have already started trading SHIB assets for ETH, selling 35 billion SHIB tokens worth $618,000 and still holding about $95 million in tokens.
Security Measures and Future Prevention
This attack highlights the growing threat posed by North Korean hackers in the cryptocurrency sector and the importance of strengthening security measures to prevent future exploits. The involvement of such a sophisticated hacking group underscores the need for constant vigilance and advanced security protocols in the rapidly evolving world of cryptocurrency.
Conclusion
The WazirX hack serves as a stark reminder of the vulnerabilities within the cryptocurrency industry and the lengths to which malicious actors will go to exploit them. With North Korean traces found in this attack, the incident not only impacts the affected exchange and its users but also sends a chilling message to the entire crypto community about the importance of robust security measures.
