Dear WazirX Tribe,

We are reaching out to update you on the recent cyber attack theft that has severely impacted WazirX.

Incident Overview: On July 18, 2024, WazirX experienced a cyber attack on one of our multisig wallets, resulting in the theft of digital assets exceeding $230 million. This wallet was managed using Liminal’s digital asset custody and wallet infrastructure. As a result of the attack, our ability to maintain 1:1 collaterals with assets has been deeply impacted.

In response to this unfortunate incident, we have taken immediate and comprehensive actions:

• Immediate response: Filed an online police complaint on the National Cyber Crime Reporting Portal and are processing a physical complaint. We have also reported the incident to the Financial Intelligence Unit (FIU) India and CERT-In.
• Exchange notification: Proactively reached out to 500+ exchanges to block the identified addresses. Many exchanges are cooperating with us, and we are actively working with them to aid our recovery efforts.
• Audit procedures: Engaging with cybersecurity experts to assist in our investigation and recovery efforts. Read our preliminary findings here.
• Bounty program: Launched a bounty program to recover the stolen assets. Rewards of up to $10,000 worth of USDT will be given for actionable intelligence that leads to the freezing and recovery of the stolen funds. We are offering 10%, i.e., up to $23 Million, as White Hat Bounty. Read more.
• Suspension of deposits/withdrawals: To ensure the safety of your assets, we have temporarily paused INR and crypto deposits/withdrawals.
• Suspension of trading: Although we previously advised against trading due to partial collateralization of assets, we have now decided to pause all trading activities. This pause will allow us to examine the affected systems, forensic data, and conduct a thorough security audit.

Next Steps:

• Ongoing Analysis: We are analyzing all forensic data and collaborating with experts to understand and determine the full impact and recovery strategies.
• Working on enabling withdrawals: We are actively working on enabling fund withdrawals. Procedures like forensic analysis and security audits require time, and we appreciate your patience as we work through this complex situation. The safety and security of our users always remain our top priority. 
• Further Updates: We will continue to keep you informed with regular updates as we progress. Our goal is to ensure transparency and to address any concerns that you may have. You can read the day-wise progress here.

This is a force majeure event beyond our control. However, we are leaving no stone unturned in our efforts to locate and recover the stolen funds. We have already tracked and blocked some funds from wallet services but cannot disclose any further details on this yet. We are collaborating with the best resources and experts to assist us in this endeavor.

Important Information:

• Affected Ethereum Wallet Address: 0x27fD43BABfbe83a81d14665b1a6fB8030A60C9b4
• Contact Us: For any queries or further information, please reach out to our support team at https://support.wazirx.com/
• Be vigilant against scam bots impersonating our official WazirX accounts and potential phishing attempts. WazirX will never ask for your private keys or passwords. All official communications will come from our verified channels only. Our official website URLs are here and here; our official X (Twitter) accounts are here and here.
• If an impersonator DMs you or contacts you via a different URL, please report it. A continuously updated list of fake websites and handles is available here. Please be careful and alert.

We understand the anxiety and concern this situation may cause, and we deeply appreciate your patience and understanding. We are committed to resolving this matter and will keep you updated with any significant developments.

Thank you for your continued trust and support.

Best,

Team WazirX

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.