anshucity

July 18 was the most disappointing day for the Indian crypto world because on this day India's largest and oldest crypto exchange @Wazirx was hacked for $230 million. This information was received from the Twitter accounts of companies that keep information about various on-chain transactions. Later Wazirx also informed about this.

What happened - A suspicious person sent Ethereum from Tornado Cash to the Wazirx exchange. The question is whether crypto is being deposited on the exchange. The person in whose account this Ether was sent must have done his KYC. Now this person makes some transactions to check the system. Now the second question here is whether crypto was being withdrawn from the exchange.
Wazirx says that when a crypto transaction goes through the exchange, the main wallet receives six signatures, five of which are from the wazirx team and one from the Liminal team, which is responsible for transaction verification. Any transaction needs three signatures from the Wazirx team (which specifically uses Ledger hardware vaults for security) and finally, Liminal’s signature to complete. A whitelist address policy is also used for additional security. These whitelisted addresses were marked and facilitated on the interface by Liminal; as a result, the Wazirx team had the ability to initiate transactions to the said whitelisted addresses.

How the cyber attack or hack happened- The cyber attack arose from a discrepancy between the data displayed on Liminal’s interface and the actual information of the transaction. During the cyber attack, there was a discrepancy between the information displayed on Liminal’s interface and the information actually signed. The hacker may have made changes to the smart contract or something similar to the system to commit this tampering.

It is reported that wazirx upgraded the multisignature and whitelist address policy and the link they got for this was created by the hacker. wazirx did not verify this with Liminal and that is why the hacker got control over some signatures. Wrong information was published on Liminal's interface and they also approved it.
Additional information- The hackers were continuously working for the last 8 days and were investigating where the security weakness of the system was by transacting SHIB? The hacker also made some USDT transactions in which he was spreading. Finally, he succeeded in completing his conspiracy and managed to transfer funds worth $230 million on the Ethereum blockchain.
Wazirx had about $500 million of consumers' money, out of which the hacker blew away about 50%!

After this, a large amount of ₹ is being withdrawn on Indian exchanges, 30% withdrawal has happened from a big exchange.
● How did the hackers manage to break such security? Were the hackers more intelligent or did someone from inside give this information?
● Are crypto transactions happening from Wazirx?
● Why did Wazirx keep 50% of the funds in a single wallet?
● The biggest question is who owns wazirx and who is accountable for the exchange?

● Did the exchange insure the consumers' funds?
● Will the investors get their funds?
👉🏻 It seems that Wazirx and Liminal will go towards a legal battle and investors may suffer losses in this whole episode.
👉🏻 Now many Indian exchanges are coming forward and saying that their platform is safe but we all know that it is not guaranteed!
👉🏻 There have been many warnings about @bitbns but here also people will speak only when something similar happens like what happened with wazirx.
👉🏻 The government or the department with which the exchanges are registered will not do anything about this because the government has already been forbidding the public from investing in crypto. There is no money laundering, so the department will also not do anything.

#india #crypto