Key Takeaways:

WazirX exchange suffered a $235 million breach from its Safe Multisig wallet on Ethereum.
Suspicious transactions were detected by Cyvers, with funds moved to a new address and converted into Ether.
WazirX has suspended withdrawals and is investigating the incident amid regulatory challenges in the Indian crypto market.

Indian cryptocurrency exchange WazirX has suffered a major security breach, losing approximately $235 million from its Safe Multisig wallet on Ethereum.

The breach involved multiple suspicious transactions detected by Web3 security firm Cyvers.

🚨ALERT🚨Hey @WazirXIndia, Our system has detected multiple suspicious transactions involving your Safe Multisig wallet on the #ETH network.

A total of $234.9M of your funds have been moved to a new address. Each transaction's caller is funded by @TornadoCash.

The suspicious… pic.twitter.com/4sajAwd4Hb
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) July 18, 2024

The funds were moved to a new address and converted into Ether.

The suspected attacker’s primary address still holds over $210 million in various cryptocurrencies, including Shiba Inu, Ether, and Polygon.

In response, WazirX has suspended withdrawals and is actively investigating the incident.

Wazirx has confirmed security breach. People who have funds in wazirx, best thing to do now is to stay calm and let the Wazirx team figure out the issue. Just to reduce panic, note that your funds in Giottus are SAFE.#WazirX #staycalm pic.twitter.com/zkaODYusmp
— Vikram Subburaj (@VikramSubburaj) July 18, 2024

They have not commented on the safety of user funds or the recovery process.

This hack occurs amid ongoing regulatory challenges in the Indian crypto market, with the Financial Intelligence Unit recently issuing compliance notices to foreign exchanges like OKX, asking Indian users to close their accounts by April 30.