Indian crypto exchange WazirX says one of its multisig wallets “experienced a security breach” after $230M+ in withdrawals; WazirX had $500M in holdings in June
The reported wallet compromise affected an exchange that had disclosed roughly $500 million in holdings a month earlier, making the loss a material test of how WazirX manages customer assets and continuity.
WazirX must contain the compromised wallet incident and address the more than $230 million in reported withdrawals, placing immediate pressure on access to assets and exchange operations.
Customers face uncertainty over custody and liquidity as the exchange moves from a security response toward recovery and claims handling.
Second-order effects
A trading and withdrawal interruption can disrupt price discovery and portfolio rebalancing for WazirX users, while any loss-sharing proposal shifts part of the incident's cost from the platform to its customer base.
The later plan to undo trades after the withdrawal freeze shows how a custody breach can spill beyond the affected wallet into the exchange's transaction history and market operations.
Third-order effects
The case illustrates that a multisig setup does not by itself settle the central exchange-custody question: when a major wallet is compromised, governance over asset recovery and loss allocation becomes as consequential as the initial security controls.
If similar incidents require restructurings rather than rapid restoration of withdrawals, customer confidence will increasingly depend on exchanges' disclosed custody arrangements and recovery frameworks, not just trading access.
The trend: Crypto exchange security incidents are increasingly becoming customer-asset allocation and operational-restructuring events rather than isolated technical outages.
📢 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.
At WazirX, our commitment to transparency and community welfare is paramount. There was a cyber attack on one of our multisig wallets. Below are the preliminary findings to clarify the situation: » Incident Overview: A cyber attack occurred in one of our multisig wallets
🚨ALERT🚨Hey @WazirXIndia, Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH network. A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash. The suspicious [image…
This bounty has been solved by ZachXBT @ZachXBT submitted definitive evidence of a KYC-linked deposit address used by the exploiter to receive funds from the WazirX exploit. This fulfills one of the criteria of the bounty - ‘Identifying a KYC centralized exchange deposit’. This
New Intel Exchange Bounty: $235M WazirX Hack This morning, WazirX experienced a security breach in one of their holding wallets. The incident resulted in over $235 million in funds lost. Addresses associated with the hacker include: 0x6EeDF92Fb92Dd68a270c3205e96DCCc527728 066 [im…
📢 Update: It appears that the security issue involves one of our Liminal multisig wallets. Our team is actively working on the matter. Thank you for your patience and support. We'll keep you posted with further updates.
Desi Mt Gox just happened. RIP WazirX. Brace for another “crypto ban” in India. Centralized exchanges are literally the opposite of decentralized finance and cryptocurrencies but the politicians will use this hack to throw dirt at crypto. If you don't understand it, ban it. /s
Some thoughts: 1) If to most people WazirX was so obviously hackable why did it take so many years for someone to do it? 2) WazirX had....HOW MUCH money??? 3) Fishy vibes for sure
1/ The exploiter of the @WazirXIndia Multisig was able to drain it after changing the implementation of the Multisig, that couldn't have been done without compromising the signers EOA, but here's a closer look on the attack flow 🧵
🚨More than $230M of assets have been abnormally transferred from the #WazirX(@WazirXIndia) wallet to the wallet"0x04b2". Currently, wallet “0x04b2” is dumping these assets, and has dumped 640.27B $PEPE($7.6M). https://etherscan.io/... [image]
Massive hack on the largest local CEX in India. Government relations in India were already dicey so I expect they roll out another ban. Doesn't look good for WazirX, as no way their valuation comes close to covering these losses to even try an equity bailout.