One of India’s biggest cryptocurrency exchanges, WazirX, has “temporarily” stopped all trading on its website. This comes just a few days after a security breach cost the company about $230 million, which is almost half of its reserves.
In a tweet on Sunday night, the Mumbai-based exchange said that the cyberattack had made it much harder to keep the important 1:1 collateral ratio with assets. This makes people even more worried about WazirX’s reserves and its ability to fully repay its customers.
This week, WazirX stopped customers from withdrawing money because someone got into one of the exchange’s multi-signature wallets and stole crypto assets worth hundreds of millions of dollars. Six people signed WazirX’s affected wallet to keep it safe, and five of them were on the WazirX team.
The company said earlier this week that the cyberattack happened because of a difference between the data shown on Liminal’s interface and the real contents of the transaction.
WazirX announced earlier on Sunday that anyone who could help the company get back its stolen funds would be rewarded with up to $23 million.
Elliptic, a tool for managing risks, said earlier this week that it had tracked down the attacker and found ties to North Korea.
WazirX reported holdings of about $500 million in its June proof-of-reserves declaration, so the fact that about $230 million in assets went missing is a big deal. The break was called “a force majeure event” by the exchange.
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The attack on WazirX didn’t affect the users of Indian exchanges CoinSwitch and CoinDCX, which both use WazirX for some of their services. They said this earlier this week.
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