Bitrabo Editorial
An Indian cryptocurrency exchange, WazirX, suffered a massive cybersecurity breach resulting in the loss of around $235 million in digital assets during the early hours of Thursday.
The breach targeted the exchange’s multi-sig wallets, leading to a substantial loss of funds as reported by the firm on X.
According to a recent report by Blockchain analytics firm Elliptic, the theft has been linked to hackers associated with North Korea. This association was also mentioned by ZachXBT, indicating similarities with a Lazarus Group attack.
Elliptic emphasized that this incident is part of an ongoing trend by North Korean hacker groups targeting major players in the cryptocurrency industry.
The stolen funds primarily consisted of various cryptocurrencies, including Ethereum and other tokens like Shiba Inu, PEPE, MATIC, and Floki, showcasing the broad range of assets targeted by the hackers.
Tracing the Stolen Assets
Investigations indicate that after the hack, the stolen assets were moved to another address using the mixing service Tornado Cash, a platform commonly utilized to obfuscate the origins of crypto funds.
This method of transferring stolen assets is a known tactic used by cybercriminals, including North Korean groups, to effectively launder their illicit gains and cover their tracks digitally.
Decentralized exchanges (DEXs) were leveraged to exchange the stolen crypto assets for Ethereum, complicating detection efforts and making it harder to trace the stolen funds.
Elliptic has implemented measures to flag any transactions involving the compromised addresses, assisting clients in avoiding inadvertent handling of stolen funds.
Revealing Additional Insights
ZachXBT has identified a KYC-linked deposit address used by the perpetrator to receive funds from the WazirX breach, potentially aiding in tracking down the exploiter.
However, the effectiveness of this approach may be limited as KYC-verified accounts can be purchased online for a nominal fee, potentially allowing hackers to bypass identity verification protocols.
Despite this, efforts are ongoing to uncover more details about the perpetrators behind the WazirX hack and mitigate the impact of the cybersecurity breach on the cryptocurrency exchange.