Recent Incident in Cryptocurrency Sector Shocks Market, WazirX Exchange Reacts
Hackers have successfully stolen a significant amount of digital assets, including $100 million worth of SHIB tokens, 15,290 ETH equivalent to $52 million, and 20 million MATIC tokens worth $11 million. Additionally, the hackers were able to withdraw 640 billion PEPE tokens valued at $7.5 million, 5.7 million USDT stablecoins, and 135 million GALA tokens totaling $3.5 million.
WazirX Exchange’s Reaction and Precautionary Measures
WazirX Exchange confirmed the security breach and suspended all cryptocurrency and Indian rupee withdrawal operations while investigating the incident. The exchange’s management is actively working to address the consequences and restore system security.
Expert Speculations
According to Yadin Zhou, co-founder of Blocksec, the breach may have been caused by compromising the private key. By gaining access to this key, hackers were able to upgrade the multi-signature wallet containing a large amount of crypto assets to a malicious contract, and subsequently withdraw a significant portion from the Safe Wallet.
Analytical company Elliptic believes that North Korean hackers may be involved in the attack. After the breach, the stolen funds were transferred to a new address using the Tornado Cash crypto mixer, and then exchanged for ethers through various decentralized platforms.
Market Impact and Rocket Resonance
The incident triggered a sharp reaction in the cryptocurrency markets. WazirX Token (WRX) plummeted by 15% to $0.14. SHIB lost over 6% of its value in dollars and 16% against the Indian rupee (INR). Some cryptocurrencies also suffered significant losses in trading pairs with INR on the WazirX exchange; for example, bitcoin in the INR pair (BTC/INR) fell by 11% to $60,945.
Cryptocurrency Hacks in June 2024
According to analysts from PeckShield, hackers stole $176.2 million from cryptocurrency trading platforms in June. The largest hack of the month was the incident involving the Turkish crypto exchange BtcTurk, which lost $100.25 million.
New Steps from OKX and Regulatory Changes
OKX has announced that it has chosen Malta as its European headquarters, citing high regulatory standards and developed infrastructure. The exchange intends to provide its cryptocurrency products and services to over 450 million EU residents in the coming months.
With the implementation of the Markets in Crypto Assets Regulation (MiCA) on December 30, 2024, cryptocurrency companies will be able to relocate to EU countries and offer services throughout the alliance territory if they obtain a license in any member state. In 2022, the Malta Financial Services Authority (MFSA) announced plans to exclude non-fungible tokens (NFTs) from the regulation of virtual assets in preparation for MiCA.
OKX recently announced the cessation of services to traders from Nigeria starting on August 16 due to overly strict regulatory requirements from local regulators.
