In July 2024, WazirX, one of India's leading cryptocurrency exchanges, fell victim to a significant cyberattack that resulted in the theft of over $230 million, affecting nearly 45% of its holdings.

The attack, which occurred on July 18, targeted WazirX's multisignature wallet, leading to the loss of crypto tokens valued at approximately $235 million.

Authorities arrested SK Masud Alam, a West Bengal resident, who allegedly created a fake account used in the attack, facilitating the breach.

Alam reportedly opened a fake account under the alias 'Souvik Mondal,' which he sold via Telegram to another individual who executed the breach.

The cybercriminals managed to drain WazirX's hot wallet and attempted to breach its cold wallet, which is designed for enhanced security.

The investigation has faced challenges, particularly due to a lack of cooperation from Liminal Custody, the firm responsible for securing WazirX's wallets, which has hindered efforts to trace the stolen assets.

Despite multiple requests, Liminal Custody failed to provide essential information needed to track the stolen cryptocurrency, raising concerns about their security protocols.

The Indian Cyber Crime Coordination Centre confirmed that WazirX's internal systems were uncompromised, validating the exchange's security measures.

WazirX has been cooperating with the investigation, providing Know Your Customer (KYC) details and transaction logs, while also having laptops seized for further examination.

In response to the hack, WazirX initiated a recovery plan on July 28, aiming to return 55% of affected users' holdings, with the remaining 45% issued in USDT-equivalent tokens.

Customers have expressed outrage over their inability to access locked assets during a significant bull market, particularly as Bitcoin reached an all-time high of $90,000.

Looking ahead, WazirX plans to diversify its revenue streams by launching new services, including a decentralized exchange, staking, and futures trading.