WazirX’s Safe Multisig wallet on Ethereum has been compromised, with funds moved and converted to Ether. Web3 security firm Cyvers detected “multiple suspicious transactions” involving the wallet, revealing that $234.9 million in funds have been transferred to a new address, funded by Tornado Cash for private transactions. The address has already swapped these funds, including Tether (USDT), Pepe (PEPE), and Gala (GALA), into Ether (ETH).
According to crypto sleuth ZachXBT on Telegram, the suspected primary attacker address still holds over $104 million to be dumped. The compromised wallet contained around $100 million in Shiba Inu (SHIB), $52 million in ETH, and $11 million in Polygon (MATIC), along with other tokens like FLOKI, Fantom (FTM), Chainlink (LINK), and Fetch.ai (FET). In response to the breach, WazirX has temporarily paused withdrawals of cryptocurrencies and Indian rupees, and is actively investigating the incident.
The Indian crypto exchange landscape remains uncertain, with the Financial Intelligence Unit (FIU) of the Indian Ministry of Finance issuing compliance notices to multiple foreign crypto exchanges, including OKX, instructing users to close accounts and redeem funds. Despite ongoing discussions, India’s regulatory framework for the crypto market is still unclear.
