WazirX, a leading cryptocurrency exchange based in India, has taken a significant step in addressing the aftermath of the major cyber attack on its systems by filing a First Information Report (FIR) with the Delhi Police.
The attack, which compromised one of the exchange’s multi-signature wallets, resulted in the loss of over $234 million. The latest filing marks a crucial development in the ongoing efforts to bring the perpetrators to justice and recover the stolen funds.
FIR Filled and Other Special Agency Now Involved
Important Update: FIR filed
Based on a complaint filed by us in connection with the Cyber attack on our multisig wallet, the police has taken cognizance of the matter and a FIR under BNS & IT Act has been registered on 5th August 2024 at PS Special Cell, PS Lodhi Colony, New… pic.twitter.com/umAkkEzv7E
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 6, 2024
The cyber attack on WazirX’s multi-signature wallet involved sophisticated techniques that bypassed the platform’s security measures.
The wallet, which was operated using Liminal’s digital asset custody and wallet infrastructure, had six signatories—five from WazirX and one from Liminal.
Transactions required approval from three WazirX signatories and final approval from Liminal’s signatory.
Despite these precautions, attackers exploited a discrepancy between the data displayed on Liminal’s interface and the actual transaction contents, leading to unauthorized transfers.
In a statement on X (formerly Twitter), WazirX detailed the incident:
“Based on a complaint filed by us in connection with the Cyberattack on our multisig wallet, the police have taken cognizance of the matter, and an FIR under BNS & IT Act has been registered on 5th August 2024 at PS Special Cell, PS Lodhi Colony, New Delhi through Intelligence Fusion & Strategic Operations, IFSO of Delhi Police.”
The FIR was registered on August 5, 2024, by the Intelligence Fusion & Strategic Operations (IFSO) unit of the Delhi Police. WazirX expressed confidence in the investigating agency and pledged full cooperation.
The exchange emphasized its commitment to recovering the stolen assets and bringing the hackers to justice.
“We are actively working on recovering the stolen funds and are hopeful that those responsible will be brought to justice.”
WazirX Exploring Other Means of Rectification Amidst Community Backlash
The community’s reaction to the incident and the subsequent FIR filing has been mixed. Some users criticized the delay in filing the FIR, while others acknowledged the complexity of the investigation process.
WazirX clarified that the initial police complaint was filed the day after the hack, but the formal FIR took additional time due to procedural requirements.
Co-founder Nischal Shetty reassured users, stating,
“Just like all our customers, we too want the culprits of this theft to be caught and the funds recovered. We’re constantly working on progressing toward next steps and solutions. We’ll continue to do that.”
In response to the attack, WazirX has been transparent about the measures it had in place and the nature of the breach.
The wallet’s configuration included robust security features, such as the Gnosis Safe multi-sig smart contract platform and Liminal’s whitelisting policy.
WazirX’s preliminary findings indicate that the cyber attack involved replacing the payload during the transaction process, which misled the signatories about the transaction’s true contents.
This discrepancy allowed the attackers to gain control over the wallet.
According to the exchange, its team is working to recover the stolen funds and has already blocked a few deposits linked to the theft. Also, the exchange is collaborating with various wallets and cybersecurity experts to trace and reclaim the assets.
In addition to the steps the WazirX team is taking in the fund recovery process, Shetty shared in a speech after their recent poll to get feedback from the community that they’re looking at other means to reimburse affected customers.
Quick update about the poll. Your suggestions and feedback is how we’ll be able to find a feasible solution https://t.co/StawTcB1BP pic.twitter.com/XkLs5Jlmx9
— Nischal (Shardeum) (@NischalShetty) July 29, 2024
“We are exploring the possibility of creating a new project or some initiative that can help, where we can airdrop tokens to our affected customers.”
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