WazirX, a major Indian cryptocurrency exchange, found itself in hot water last Thursday after a serious security breach drained over $230 million from one of its multisig wallets. Multisig wallets are supposed to be the Fort Knox of digital finance, requiring multiple private keys to approve transactions. But in this case, someone found a way through the defenses.
In a tweet (or X post, as it’s now called), WazirX admitted the breach, promising a thorough investigation while freezing withdrawals of both INR and cryptocurrencies for safety’s sake. They assured their users they’d keep them in the loop as they pieced together what happened.
📢 Update: We're aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding.…
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 18, 2024
Contrary to some reports, WazirX has not discovered any additional exploits in their smart contracts. The company has not created any secret or secluded website for users to cancel approvals. Users should be cautious of any websites claiming to cancel approvals on behalf of WazirX, as these are likely impersonation attempts. Interacting with such websites could potentially lead to loss of funds.
Meanwhile, Liminal Custody, a trusty digital vault from Singapore, chimed in to clarify that only the multisig wallets not born in their ecosystem took the hit. Their own platform remains as tight as a drum, guarding their assets and wallets like a vigilant bouncer.
To get technical (but not too much), multisig wallets are like a financial threesome: they need at least two keys to say “yes” before money moves. It’s usually a solid defense, but in this case, the system cracked under pressure.
As investigators dig deeper, it’s a stark reminder that in the Wild West of cryptocurrencies, even the best defenses can buckle. So, if you’re playing the crypto game, it might be worth keeping an eye on where your money sleeps at night—especially if it’s in a multisig wallet.
Users are advised to rely only on official WazirX channels for accurate information and updates regarding the situation.
