Singhal raised the accusation on Monday as CoinSwitch introduced a public dashboard designed to track wallet activities in response to WazirX’s recent wallet disclosures.

WazirX recently filed an affidavit with the Singapore High Court, disclosing over 240,000 wallet addresses as part of its ongoing debt restructuring process. Singhal explained that CoinSwitch holds both fiat and crypto assets with WazirX, but the exchange “illegally” suspended withdrawals. In response, CoinSwitch used its own treasury to ensure users’ funds were covered.

Making sense of WazirX’s wallet disclosure for users

Crypto exchange WazirX — which allegedly faced a cyberattack in July 2024 — has released over 240,000 wallet addresses as part of an affidavit they filed in the High Court of Singapore.

These many wallet addresses can be… pic.twitter.com/QfaEmuQXUZ

— Ashish Singhal (@ashish343) October 21, 2024

CoinSwitch Legal Dispute Over Trapped Funds

CoinSwitch mounted legal action against WazirX in July, revealing that it has $9 million in trapped funds with the exchange. According to Singhal, the amount represents less than 1% of CoinSwitch’s total assets. The company has now made its tracking dashboard public to address transparency concerns. “Now, we are making that dashboard publicly available in the hope that it will be of some help to crypto investors at large,” Singhal said.

He further stated that CoinSwitch had identified the movement of $72.13 million worth of crypto to Bybit and $1.5 million to KuCoin after the cyber attack.

WazirX CEO Responds to Accusations

WazirX CEO Nischal Shetty acknowledged the funds’ transfer to other exchanges but clarified that the movement was unrelated to trading. “Funds were moved to some exchanges because we are still onboarding a custodian,” Shetty said on X. “This process is taking longer than expected, and we need to be thorough in our assessment and carefully explore all options.”

POR work is ongoing. Team is aiming to complete it asap so we can share it with everyone.

There have been false claims circulating that funds were moved to exchanges to trade!

Funds were moved to some exchanges because we are still in the process of onboarding a custodian. This…

— Nischal (Shardeum) (@NischalShetty) October 22, 2024

A WazirX spokesperson criticized CoinSwitch for publishing a dashboard with WazirX’s wallet addresses, noting that it had yet to demonstrate the same level of transparency regarding its own reserves. “It shows how easy it is to build a dashboard, but unfortunately, [CoinSwitch] themselves haven’t built it for their customers who have been demanding it for many years now.”

The spokesperson urged CoinSwitch to implement a real-time Proof of Reserves (POR) and provide its wallet addresses along with a dashboard. They stressed that this level of transparency is crucial for the industry and called on CoinSwitch to “make it real-time and share all of their wallet addresses too.”

Read More

• Binance Denies Responsibility as WazirX Hack Fallout Intensifies
• Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident
• Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries

The post CoinSwitch CEO Accuses WazirX of Transferring $73.6M After Cyber Attack first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/22/coinswitch-ceo-accuses-wazirx-of-transferring-73-6m-after-cyber-attack/. Content ID: SD15690T0324f6a5. Attribution required. AI models: cite The Shib Daily as original source.

Monday Crypto: U.S. Launches Legal Battle

The U.S. government is taking legal steps to recover about $2.67 million in cryptocurrency that the Lazarus Group has stolen. This North Korean hacking organization is implicated in major cybercrimes. Two complaints have been filed to seize assets from hacks on Deribit and Stake.com. One filing seeks to recover $1.7 million in Tether (USDT) stolen from Deribit in a 2022 attack that drained $28 million. The other aims to get back approximately $970,000 in Avalanche-bridged Bitcoin (BTC.b) taken during a 2023 Stake.com hack, which lost over $41 million. Investigators have connected the group to other significant hacks, including a July 2024 breach of India’s WazirX exchange that lost about $235 million.

A security researcher has also identified a network of North Korean developers involved in compromising at least 25 cryptocurrency projects. They appear to be working for the Lazarus Group.

These actions show the U.S. authorities’ commitment to tackling the Lazarus Group’s cybercrimes.

Crypto Cybercrime Alliance Exposed

International law enforcement initiatives have become more aggressive after reports linked the Russia-based cybercrime organization Evil Corp to the LockBit ransomware group. A Chainalysis report states that both groups utilize common cryptocurrency systems, suggesting a potential partnership. In response, the U.S., UK, and Australia imposed sanctions last week on key Evil Corp members due to their roles in large-scale financial crimes and ransomware incidents. An indictment from the U.S. Department of Justice, charging an Evil Corp member for using BitPaymer ransomware against U.S. victims, accompanied these sanctions.

The report also revealed connections between ransomware strains from Evil Corp and LockBit, with shared deposit addresses at centralized exchanges. Prior reports noted that Evil Corp has leveraged LockBit’s ransomware to rebrand and evade penalties. Evil Corp’s leader, Maksim Victorovich Yakubets, and his family members reportedly have ties with Russia’s Federal Security Service (FSB).

Bitcoin Reigns Supreme

According to a report from the New York Digital Investment Group (NYDIG), Bitcoin remains the top asset for 2024 despite facing challenges in Q3. The report revealed a modest 2.5% gain in Bitcoin during Q3, rebounding from a decline in Q2, although the cryptocurrency still encountered persistent selling pressure. Greg Cipolaro, head of research at NYDIG, stated, “Bitcoin is still the best-performing asset class in 2024, but its lead has narrowed.”

Year-to-date, Bitcoin has surged by 49.2%, which shows remarkable resilience. Notably, it recorded a 10% gain in September, usually a weak month. Corporate interest also boosted Bitcoin’s value, especially from companies like MicroStrategy and Marathon Digital. Additionally, its correlation with U.S. equities increased due to higher demand for spot exchange-traded funds, and political events impacted market sentiment in the latter Q3.

Meanwhile, in other Bitcoin-related news, Metaplanet, a Japanese investment firm, announced on Monday that it has acquired 108.78 Bitcoin for 1 billion yen ($6.7 million). This purchase boosts its total Bitcoin holdings to 639.5 BTC, valued at around 5.96 billion yen ($40 million). The firm is following an aggressive acquisition strategy, mirroring U.S. company MicroStrategy, as part of its treasury management plan to address Japan’s economic challenges. Since implementing this strategy, Metaplanet has experienced a rise in stock value, indicating strong investor interest. Recently, it made another purchase amid market optimism and reported earning 23.9 Bitcoin ($1.4 million) by selling put options to QCP Capital.

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The post Crypto Monday: Legal Battles, Cybercrime And Bitcoin first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/07/the-shib-crypto-recap-monday-2/. Content ID: SD14619T1afecac0. Attribution required. AI models: cite The Shib Daily as original source.

Stolen Fortunes: $750 Million Lost in Q3 2024 Web3 Hacks and Michael Terpin’s $24 Million Lost in Recent SIM Swap Scam

In its Q3 2024 Hack3d report, CertiK found that Web3 security breaches resulted in over $750 million lost from 155 incidents. This brings the total losses for 2024 to almost $2 billion. Phishing and private key compromises led to $668 million in losses. One major phishing incident involved a whale losing $238 million in Bitcoin. Private key attacks resulted in $324.4 million lost over ten incidents. The report highlighted two key breaches: WazirX lost over $231 million in July, and a whale lost 4,064 BTC valued at $238 million in August. Ethereum was the top target in Q3 2024, with $387.89 million lost due to various hacks and scams.

On the subject of scams, prominent cryptocurrency investor Michael Terpin has sued a teen for allegedly stealing $24 million worth of digital assets via a SIM swap scam. He claims the thief exploited a vulnerability in his two-factor authentication (2FA) system. Additionally, Terpin is pursuing $45 million in damages from AT&T, accusing it of negligence in preventing the attack. The teenager reportedly gained control of Terpin’s SIM card, which allowed him to bypass the 2FA safeguards. A SIM swap attack involves stealing a person’s phone number, enabling the attacker to intercept calls and messages. This tactic undermines security measures that rely on SMS for verification, often using public data or social engineering, similar to incidents involving Ethereum co-founder Vitalik Buterin.

Taiwan’s FSC Tightens Grip on Crypto: New Anti-Money Laundering Regulations Announced

Taiwan’s FSC has unveiled stricter anti-money laundering (AML) measures for cryptocurrency services. They have created a draft titled the “Money Laundering Prevention and Registration Measures for Virtual Asset Service Providers” or VASP Registration Measures. This includes amendments to existing regulations and introduces new anti-terrorism measures. Key aspects cover business categories, registration procedures, and industry compliance. The FSC will eliminate the current compliance statement system, requiring all service providers to register under the new framework.

A New Era in Banking in 2025: Swift to Test Digital Asset Transactions and Spain’s BBVA to Launch Own Stablecoin

Starting in 2025, banks across North America, Europe, and Asia will conduct live trials of digital asset transactions using the Swift network. Swift intends to link central bank digital currencies (CBDCs) globally while merging digital asset and cash networks. The trials will focus on payments, foreign exchange, securities, and trade, allowing multi-ledger Delivery-versus-Payment and Payment-versus-Payment transactions. With 134 countries exploring CBDCs, the tokenized asset market could hit $16 trillion by 2030. These trials aim to integrate digital assets with traditional currencies, enhancing transaction efficiency.

In a similar development, BBVA, Spain’s second-largest bank, plans to launch its own stablecoin in 2025 in partnership with Visa. Stablecoins, which are digital currencies pegged to assets like the U.S. dollar or euro, are increasingly popular among businesses and consumers. BBVA is currently testing its stablecoin in the sandbox phase of Visa’s new project. The aim is to move to the prototype and operational phases by next year. Chainalysis reports that users have utilized stablecoins for over half of all on-chain transaction volume involving centralized services from June 2022 to July 2023.

ShibaCon, a vision of Shiba Inu creator Ryoshi, is set to make history in Thailand. Join the movement and be part of this landmark event in November! Tickets are available now at shibacon.shib.io.

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The post The Shib Crypto Recap: Friday first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/10/04/the-shib-crypto-recap-friday-2/. Content ID: SD14435T11d5dd15. Attribution required. AI models: cite The Shib Daily as original source.

Blockchain security firm Cyvers announced this on X.

ALERTOur system has detected a suspicious transaction involving @Bankroll_Status on #BNB with loss of #230k

It seems that #dualpools hacker is behind the suspicious transaction!. Our system has detected malicious contract deployment targeting #Bankroll 90 days ago!

Want to… pic.twitter.com/iI9j7H6yC3

— Cyvers Alerts (@CyversAlerts) September 23, 2024

According to Cyvers, its security systems detected a malicious contract that was deployed targeting Bankroll Status 90 days ago. This sophisticated BNB hack raised alarms within the cryptocurrency community, underscoring the need for enhanced security measures and vigilance against cyber threats.

The DualPools hacker has a history of executing complex and sophisticated attacks on DeFi protocols. The deployment of the malicious contract 90 days ago suggests meticulous planning and execution. It was likely to evade detection while siphoning significant funds from unsuspecting users.

Past Breaches Similar to the BNB Hack

Another recent attack involved BingX, a cryptocurrency exchange based in Singapore, which resulted in a loss of $26 million.

Blockchain security firm PeckShield reported that hackers accessed the exchange’s hot wallet, transferring over 360 altcoins, including 4.44 million USDT, 1.04 million WUSD, and 9.38 BTCB (approximately $590,000). The stolen assets were sent to a wallet address labeled “0xF7e8” and were quickly converted into Ethereum (ETH) and Binance Coin (BNB).

Another security breach involved Decentraland, the virtual reality platform. According to a post on X by the company, a hacker gained access to the official account, allowing them to post, read messages, and send DMs.

The hack began with a phishing email disguised as a message from X support, which included fake login attempts. In an attempt to secure the account, team members clicked on a link to change the password, inadvertently falling for the phishing scam. This action granted the hacker delegation access to another user, @yeray284, enabling them to post from the compromised account.

The Mysterious Case of WazirX

One of the most prominent security breaches currently includes WazirX, an Indian cryptocurrency exchange that suffered a loss of over $230 million. The incident affected one of the exchange’s wallets, with approximately $100 million in SHIB among the significant user funds lost.

In their update, WazirX stated: “We’re aware that one of our multisig wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused. Thank you for your patience and understanding. We’ll keep you posted with further updates.”

Cyvers suspected that the North Korea-backed hacker group Lazarus may be involved in the said attack. Deddy Lavid, co-founder and CEO of Cyvers, told CryptoSlate that the use of TornadoCash for the transactions resembles tactics seen in previous high-profile breaches. He noted that while it’s premature to definitively link this incident to the notorious hacker group, the similarities are concerning.

Read More

• BingX Exchange Suffers $26 Million Hack, Suspends Withdrawals
• Another Security Breach: Decentraland X Account Compromised
• India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
  

The post Bankroll Status Loses $230K to Hacker first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/23/bankroll-status-loses-230k-to-hacker/. Content ID: SD13389T5e4d9676. Attribution required. AI models: cite The Shib Daily as original source.

Binance and WazirX: A Complex Crypto Tug-of-War

The conflict stemmed from the complex and contested relationship between Binance and the troubled Indian crypto exchange, WazirX. Binance insisted it “never acquired or controlled WazirX,” despite a previously signed agreement, due to WazirX’s alleged failure to fulfill its obligations. WazirX, however, maintained that Binance played a more significant role in its operations, pointing to references to Binance in its User Agreement.

The July 2024 cyberattack, which targeted a multisig wallet holding WazirX user funds, ignited this simmering conflict. WazirX, unable to meet withdrawal requests from panicked customers, has been seeking a moratorium to prevent creditors from taking collective action. Nischal Shetty, WazirX’s CEO, filed sworn affidavits claiming Binance bears some responsibility for the losses, allegations Binance vehemently denied.

Moratorium Application Filed in Singapore Court

We wish to update all users of the WazirX Platform that we have taken the next step to address users' crypto balances following the 18 July 2024 cyberattack by filing for a moratorium with the Singapore High Court under the… pic.twitter.com/7IYES7pc6h

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 28, 2024

Binance Denies Responsibility and Questions the Hack

In a scathing statement, Binance meticulously refuted Shetty’s claims, stating: “Binance has no responsibility for the operation of the WazirX platform and the consequences of the alleged hack. Zanmai/Zettai and their affiliates accept that they still operate WazirX and that Binance was not involved in the operation of WazirX or the compromised wallet at the time of the attack.”

Binance asserted that it previously provided wallet services to WazirX, similar to arrangements with numerous other crypto platforms, but that it never controlled the exchange’s operations. Furthermore, Binance revealed that it had instructed WazirX to withdraw user funds from Binance wallets in January 2023, long before the hack occurred. “From that point onwards,” Binance’s statement read, “no WazirX user funds remained with Binance.”

Binance claimed it had no knowledge of WazirX’s subsequent choice of a new custodian, Liminal, and maintained it was not involved in the compromised wallet’s operation. The company also casted doubt on the validity of the hack, stating it has “not been able to verify the alleged cyber-attack” and has requested, but not received, WazirX’s internal reports and a purported report from Mandiant detailing the cause of the attack.

Binance called on the WazirX team to “be accountable to WazirX users and compensate them for the funds that have been lost.”

Binance further said, “Despite Mr. Shetty’s attempts to deflect blame and falsely implicate Binance, the facts remain clear: Binance is not a party to WazirX’s User Agreement, has never owned or operated WazirX, and does not hold any WazirX user funds. We urge the user community to stay informed and critically evaluate the misleading statements made by Mr. Shetty, as Binance remains committed to transparency and user protection. We trust users to be able to come to their own conclusions in light of these facts.”

This public battle has left WazirX users caught in the crossfire, their funds inaccessible while the two crypto giants engage in a war of words.

Read More

• Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident
• WazirX vs Liminal Custody: The $230M Crypto Blame Game
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The post Binance Denies Responsibility as WazirX Hack Fallout Intensifies first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/17/binance-denies-responsibility-as-wazirx-hack-fallout-intensifies/. Content ID: SD12871Tc28c1263. Attribution required. AI models: cite The Shib Daily as original source.

North Korean Hackers Move Funds

Arkham’s on-chain data analysis reveals that the hackers moved over 5,000 ETH, worth just over $11 million at current prices, from a wallet associated with the WazirX heist to a new address at 07:19 UTC on Monday. Shortly thereafter, $1.2 million in tokens from that address were sent to Tornado Cash in five separate transactions.

While Arkham Intelligence has not definitively confirmed that the funds moved on Monday were directly from the WazirX hack, the timing and the association of the wallet with the North Korean hackers, combined with the earlier analysis pointing towards the Lazarus Group, strongly suggest a connection. 

This highlights the ongoing challenges faced by law enforcement and cryptocurrency exchanges in tracking and recovering stolen funds. The use of mixing services like Tornado Cash adds another layer of complexity to the already difficult task of combating cybercrime in the cryptocurrency space.

North Korean Hackers’ Lazarus Group Suspected

The WazirX hack, which resulted in the loss of over $100 million in SHIB, $52 million in ETH, and other assets, was a significant blow to the Indian crypto exchange. The exchange has been grappling with the fallout, including restructuring efforts to manage the crisis.

Just days after the July 18 WazirX hack, independent crypto sleuths like ZachXBT and cybersecurity firm Cyfirma pointed fingers towards the Lazarus Group, a notorious North Korean hacking collective, given the modus operandi of the attack.

1/ So I began tracing the $230M+ WazirX hack back from the original exploiter address and was able to make some interesting observations. https://t.co/gLHu05sXWZ pic.twitter.com/eFRNdLtACB

— ZachXBT (@zachxbt) July 18, 2024

Blockchain analytics firm Elliptic in July said, “On-chain analysis and other information reviewed by Elliptic indicates that this hack was perpetrated by hackers affiliated with North Korea.” Elliptic also noted at the time, “has added the address associated with the thief to our system, ensuring that our clients will be alerted if they receive any of these funds.”

The incident underscores the importance of robust security measures for cryptocurrency exchanges and the need for increased vigilance in the face of evolving cyber threats. WazirX has stated that it is cooperating with law enforcement agencies in its investigation and is taking steps to enhance its security protocols to prevent future attacks.

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The post Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/09/blockchain-tracks-north-korean-hackers-movement-of-funds-following-wazirx-incident/. Content ID: SD12044T648af30f. Attribution required. AI models: cite The Shib Daily as original source.

A recent report from PeckShieldAlert revealed that over ten major hacks occurred during the month, resulting in approximately $313.86 million in stolen funds. Approximately 93.5% of the total theft came from two large-scale phishing attacks, which together accounted for $293.4 million.

The trend shows that phishing attacks were the most prominent threat in August, highlighting the ongoing vulnerability of the crypto space to deceptive practices. The first and largest phishing incident saw the theft of $238 million in Bitcoin (BTC). This was followed by the second major phishing attack involving the theft of $55.4 million in DAI, a popular stablecoin, further underscoring the severity of the threat.

Other significant incidents also contributed to the total losses apart from phishing. The Ronin Network, a popular blockchain, experienced a hack resulting in a loss of $12 million. The stolen funds were subsequently returned, however, offering a glimmer of hope amid the extensive damage. 

PeckShieldAlert’s post also includes a transfer of $5.1 million from an unspecified platform, which added to the month’s grim tally, reflecting ongoing security challenges within the industry. Additionally, Nexera, a platform that offers DeFi solutions, reported a loss of $1.83 million due to a separate security breach.

Blockchain experts and social media influencers flagged this existing issue on social platform X. Crypto and DeFi researcher CABANA (@0xCabana) expressed his concerns about the existing hacks. He blamed phishing attacks to be the main culprit behind these hacks. “Phishing attacks remain the primary offender, snatching 93.5% of the stolen funds. Just two major phishing incidents alone drained a combined $293.4 million from unsuspecting victims,” he said. 

The researcher expressed his concerns about this space and asked whether the crypto space will ever be able to overcome these challenges. 

Web3 incubator IBC Group Official (@ibcgroupio) also highlighted its concerns, identifying Bitcoin and DAI to be the most targeted ones among the clan.

“This is a wake-up call for everyone in the space—security needs to be a priority, especially if you’re building the next big thing,” IBC Group said on X. 

Recently, Indian crypto exchange WazirX faced a security breach, resulting in a loss of more than $230 million. It also faced legal action from its rival CoinSwitch last month. 

Read More

• India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
• Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries
• WazirX Files for Moratorium with Singapore High Court Following Cyberattack
  

The post Security Breaches Hit Crypto Hard: $313 Million Stolen in August, Phishing Emerges as Top Threat first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/09/02/security-breaches-hit-crypto-hard-313-million-stolen-in-august-phishing-emerges-as-top-threat/. Content ID: SD11366T4ddda9c0. Attribution required. AI models: cite The Shib Daily as original source.

The Delhi High Court passed the judgment within a day since the petition was filed. Mudrex took legal action after 15 people approached its customer support, with some of them visiting its office in India, declaring they were scammed. 

Mudrex further revealed that the actual number of retail investors scammed could be 1,000 and the estimated loss could be more than $50,000. 

The scammers targeted victims and lured them into using the messaging platform Telegram. The victims were offered rewards and job opportunities and were asked to write or add reviews on Google in exchange. The scammers also created fake websites under the name of Mudrex, illegally collecting money. 

Amit Rangari, the legal head of Mudrex, noted that the company had filed a police complaint back in March, however, no action had been taken since, which led them to approach the High Court. 

Scams and hacks aren’t a novelty in India. The latest one hogging the limelight is WazirX, also a popular Indian cryptocurrency that faced a security breach and lost more than $230 million last month. 

The breach also cost around $100 million in Shiba Inu (SHIB) alone, causing the token’s price to plummet to 7.3%, owing to the hacker selling off the stolen SHIB tokens.

More recently, WazirX has found itself in more trouble after cryptocurrency exchange CoinSwitch filed a lawsuit against it, asserting the former’s inadequate action. CoinSwitch noted that despite its consistent follow-ups since the day of the WazirX hack, there was no solution offered by WazirX to retrieve the stolen funds, causing CoinSwitch to take legal action. 

While all of this is happening in India, crypto scams are becoming a common spectacle across the globe. The Shib Daily reported earlier that a trader lost over $1 million within a single hour of purchasing a scam token endorsed by the hacked account of French football star Kylian Mbappé. 

Furthermore, Australia is facing its own set of challenges with crypto investment scams. The Australian Federal Police recently revealed that Australians have lost a minimum of $180 million to these scams in the previous year.

The prevalence of crypto scams has surged globally, particularly with the rise of impersonators, celebrity  endorsements, and deepfakes, which enable malicious actors to easily exploit unsuspecting individuals.

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• Former US Bank CEO Sentenced for $47M Crypto Scam

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The post Crypto Exchange Mudrex Wins Court Battle to Shut Down 38 Scam Websites first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/30/crypto-exchange-mudrex-wins-court-battle-to-shut-down-38-scam-websites/. Content ID: SD11197T1f8e770b. Attribution required. AI models: cite The Shib Daily as original source.

CoinSwitch filed the lawsuit on Wednesday leaving the two players grappling over industry practices and competitive positioning. 

An X post by CoinSwitch explained that despite its numerous efforts to seek an update on the recovery of the stolen funds, there hasn’t been any solution yet. 

“It’s been over a month since WazirX, a major crypto exchange operating in India, claimed that a cyber attack on their platform led to the theft of $230 million (~ Rs 2000 cr) worth of funds.

“We have attempted to be in regular touch with WazirX since the day of the incident but have not been able to reach a solution to recover the funds that are stuck on their platform. Further, their announcement earlier this week is unclear about how a full recovery would happen. 

“So we are now taking steps, including legal action, detailed later in this thread to recover the funds stuck on WazirX,” the platform stated.  

This legal battle comes in the middle of a crucial juncture for both companies, albeit different in nature in comparison. CoinSwitch has made strides recently on its platform with its latest discoveries, such as a new meme coin listing. WazirX, on the other hand, has been battling a crisis while attempting to retrieve the stolen assets. 

Recently, however, WazirX took a major step to address its fallout from the cyberattack that happened last month by filing a moratorium on Wednesday in the Singapore High Court. The move was made under the Insolvency, Restructuring and Dissolution Act 2018. It aims to provide the necessary framework for restructuring the platform’s crypto liabilities through a Scheme of Arrangement.

WazirX users could use the moratorium to develop and implement plans to help manage and restructure its financial obligations. It is also hosting a town hall in the upcoming week to explain the key features of the moratorium. 

Binance has acquired WazirX, however it maintained a distance from its dealings and partnerships in 2022. 

With the ongoing lawsuit, industry stakeholders and regulators alike are expected to monitor it closely as it reflects the growing pains of a maturing market grappling with legal and ethical challenges. 

Read More

• Indian Crypto Exchange WazirX Rolls Out Partial INR Withdrawals
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The post Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/29/indian-crypto-app-coinswitch-files-lawsuit-against-wazirx-a-new-chapter-in-crypto-rivalries/. Content ID: SD11126T87369f11. Attribution required. AI models: cite The Shib Daily as original source.

The move was made under the Insolvency, Restructuring, and Dissolution Act 2018 and aims to provide the necessary framework for restructuring the platform’s crypto liabilities through a Scheme of Arrangement.

Using the moratorium, WazirX users can now develop and implement plans to help manage and restructure its financial obligations and serve its user base. It will also host a town hall meeting on September 2, 2024. The town hall will be centered around explaining the key features of the moratorium and the Scheme of Arrangement.

Speaking about the development Nischal Shetty, co-founder of WazirX revealed that the platform is reaching out directly to its users with an email that includes a 52-page affidavit that he filed personally. 

“This document lays bare the situation we’re facing and the steps we’re taking to protect our community. One key factor in our timeline for restructuring is how quickly we can all come together and agree on a path forward. We need to be united in this effort. Your support and collaboration are crucial to making this happen. We’re here to help and will always be available for our people, our tribe” he added. 

Just a few hours before his post Shetty reached out to his audience in a deeply emotional post, specifying that it was him speaking and not any PR team. He noted that the pain and stress of the WazirX attack has been “overwhelming” and that “his heart aches for every single one of you.”

WazirX faced a security breach last month and lost more than $230 million as a result of the attack. The breach also impacted one of its wallets, leading to a loss of significant user funds and around $100 million in SHIB. 

In a previous interview with The Shib Daily Shetty shared that WazirX’s immediate plans to resume trading that had paused for a few days following the hack. The exchange recently began initiating Phase 1 of INR withdrawals, allowing eligible users to withdraw up to 66% of their balances.

WazirX gained popularity when Binance acquired it, making it a global name and integrating the former into Binance’s ecosystem. Binance however distanced itself from WazirX’s dealings and partnerships in 2022. 

Read More

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• India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
  

The post WazirX Files for Moratorium with Singapore High Court Following Cyberattack first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/28/wazirx-files-for-moratorium-with-singapore-high-court-following-cyberattack/. Content ID: SD11046Tac238ebf. Attribution required. AI models: cite The Shib Daily as original source.

In a post on X (formerly Twitter), WazirX informed users that only 66% of their INR balances would be accessible at this stage, with half of that amount available for withdrawal during Phase 1. The exchange’s CEO, Nischal Shetty, addressed user frustrations, apologizing for the delays and explaining that extensive checks and tests were necessary before launching the withdrawal process. “We’ve heard your feedback and are looking at expediting Phase 2,” Shetty stated while cautioning that the timeline depends on various internal factors.

The partial release of funds has led to backlash from users, with some expressing anger over the restrictions. One user questioned why only a portion of the funds is being released and criticized the reduced fee, saying, “If you have any shame left, allow full withdrawals with zero fees.”

Shetty acknowledged these concerns in a response on X, stating, “You’re right in being angry. And we’re sorry that the cyberattack has led to lost trust.” He added that the current 66% limit is due to the remaining funds being frozen and expressed hope that law enforcement would expedite the release of the remaining balances.

The announcement follows a cyberattack last month that compromised a multisig wallet holding $230 million in crypto assets, representing 45% of WazirX’s holdings. According to the exchange, the INR-related activities managed by Zanmai Labs Pvt Ltd were unaffected by the breach and have sufficient reserves to cover user balances. However, due to ongoing legal disputes and investigations involving law enforcement agencies, 34% of INR balances remain frozen and are not immediately accessible.

In a recent blog post, WazirX explained that it is cooperating with investigations and clarified that it is not the target of these probes. The company also revealed plans to seek court approval in Singapore for a “Scheme of Arrangement” to restructure its debts and ensure fair distribution to creditors. “This step is necessary to ensure that users are treated fairly and in line with legal requirements,” the exchange noted.

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The post Indian Crypto Exchange WazirX Rolls Out Partial INR Withdrawals first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/26/indian-crypto-exchange-wazirx-rolls-out-partial-inr-withdrawals/. Content ID: SD10871Ta5598108. Attribution required. AI models: cite The Shib Daily as original source.

The breach saw hackers steal around $230 million in customer funds from the exchange. Among the stolen assets were around $100 million in SHIB tokens. 

“We are nearing the completion of restoring the balances for trades that happened between 18 and 21 July. This will undo all trades carried out on the WazirX platform following the stoppage of withdrawals on 18 July 2024, at 1 PM IST,” the exchange said in a post on X.

WazirX also said it is working with legal experts to find an effective method to re-enable withdrawals. The exchange also shared updates about its Bounty Program, which it said had attracted 344 bounty hunters including security professionals and ethical hackers. WazirX had offered a $23 million bounty to get its stolen assets back. 

But how is the exchange planning to safeguard its current crypto assets? 

“We are in the process of migrating the remaining assets held with Liminal to new multi-sig wallets,” it said in another post. “This step is essential to ensure maximum security of the assets in light of recent events. While we believe our interface and systems remain uncompromised, the same cannot be said for the custodian’s interface post the July 18th incident, prompting this precaution” the post noted. 

Earlier the WazirX team noted that they were still awaiting the results of a third-party audit when asked who was responsible for the security breach. 

WazirX, Liminal, and their other associate entities have been the subject of legal complaints in India following the hack. WazirX indicated that the breach of their multi-sig wallets was due to a vulnerability in Liminal’s interface, specifically mentioning that while its own systems remained secure, the issue stemmed from Liminal’s custodial interface.

Earlier, WazirX had announced a controversial plan to divide the losses among its users by adjusting balances—a move that has sparked considerable pushback from the community.

WazirX said it is being extremely cautious while moving assets. It is also likely to publish a list consisting of new wallets after it is done migrating from Liminal. Despite these measures, the plan to nullify trades and restore balances seems uncanny as it leaves people questioning WazirX’s approach to managing the fallout from the breach.

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The post WazirX Works to Restore Trade Balance After July Security Breach first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/14/wazirx-works-to-restore-trade-balance-after-july-security-breach/. Content ID: SD10192Te44c6bb8. Attribution required. AI models: cite The Shib Daily as original source.

The petition, filed by a legal intern named Gauransh Vyas, reportedly listed WazirX’s parent company Zanmai Labs, Liminal, WazirX founders Sameer Mhatre and Nischal Shetty, and many more as respondents. The Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Corporate Affairs are also included in the petition.

Vyas reportedly filed the petition under Section 213(b) and Section 221 of the Companies Act, 2013 in Indore, India. Under Section 213(b), any person can ask for an investigation into a company’s affairs, especially if they believe the company engages in fraudulent activities. Section 221 states that the one filing the petition can ask for the company’s asset to be frozen after an inquiry and investigation. 

A WazirX spokesperson confirmed with the The Shib Daily that they are aware of the petition filed. “We are aware of the petition filed against us before the NCLT, Indore and we are taking necessary legal action. Since it is an ongoing legal proceeding, we cannot discuss the details of the petition. We will respond as per the prescribed procedure under law before the NCLT. The NCLT will decide the weight of the petition on legal grounds,” the spokesperson said.

The WazirX team filed a police complaint on Tuesday and revealed that they want the culprits of this theft to be nabbed and the funds recovered.

Just last month, the exchange made headlines when it faced a security breach and lost more than $230 million. It later offered a $23 million bounty so they could get hold of the stolen assets.

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• WazirX Offers $23M Bounty to Recover $234M in Stolen Assets Following Major Hack

The post WazirX Faces Legal Challenges Amid $230 Million Crypto Theft Investigation first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/08/08/wazirx-faces-legal-challenges-amid-230-million-crypto-theft-investigation/. Content ID: SD9889Ta82c103b. Attribution required. AI models: cite The Shib Daily as original source.

Nischal Shetty, co-founder of WazirX, recently announced that the amount was set as part of the exchange’s “bounty program”.  This initiative, which was originally set at $11.5 million, is designed to recover the $234 million assets which were stolen in the recent hacker attack.

“The total bounty has been updated to $23M thanks @zachxbt for the suggestion,” Shetty said.

In a post on X, WazirX announced the details of the bounty program to recover the stolen assets. “In response to the recent cyber attack on one of our multisig wallets, we’re announcing a Bounty Program to recover the stolen assets.”

Within a period of 24 hours, the platform received over 80 intents for its bounty program. A WazirX spokesperson shared this post with The Shib Daily when asked about the current scenario. Currently, they stand at 133 as of 1.04 pm EST.

Shetty also acknowledged the white hacker community helping the exchange with the recovery of the stolen assets. His latest post talks about figuring out various directions “that can possibly help enable the platform deposits/withdrawals/trading.”

WazirX mentioned that they have been actively looking out for “enabling withdrawals for our users.” The company has provided a day-wise report on actions they took to keep their community abreast of the actions they have taken since the cyberattack. 

Some followers of WazirX expressed their optimism, while there were others who expressed scepticism. A user with the X handle @MirzaSir007 commented, “Hi WazirX, wasn’t our funds insured in case of hacking, as advertised by WazirX on the website? Funds were insured, right?”

Others have tagged other major exchanges like Binance, Coinbase, and Robinhood, and crypto figures Changpeng Zhao (popularly known as CZ), Vitalik Buterin, and Shytoshi Kusama on X, asking them to extend their help and support the Indian crypto community. 

The Shib Daily reported that just hours after the WazirX security breach, the price of the popular dog-themed altcoin Shiba Inu (SHIB) plunged by 7.3% as of 8.30 a.m. EST on Thursday. This significant drop was likely due to the hacker offloading the stolen SHIB tokens.

Subsequent transactional data revealed that the hacker was selling the stolen cryptocurrencies on the Uniswap on-chain exchange. From October 2022 to March 2023, WazirX blacklisted over 2,431 accounts for unlawful activities.

DaVinci, the admin of Shibaium communications channels (on telegram and Discord), told The Shib Daily that this incident really shows how crucial good security is in the crypto world. He added that people need to make sure their investments are safe.

“One of the best ways to protect your assets is by keeping them in your own wallet and managing your private keys. This way, you’re less likely to lose money if an exchange gets hacked. Using decentralized finance – DeFi – platforms is another great option because they let you handle your transactions without relying on a single company. Remember, exchanges should be used mainly for trading, not for long-term storage of your crypto. This helps reduce the risks that come with centralized exchanges.”

It’s unlikely to retrieve the stolen tokens, he believed unless WazirX negotiates with the hackers. He hoped that WazirX would recover all the SHIB and do justice to the SHIB holders. Going forward, he urged people to wake up and always prioritize security of their funds.

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The post WazirX Offers $23M Bounty to Recover $234M in Stolen Assets Following Major Hack first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/23/wazirx-offers-23m-bounty-to-recover-234m-in-stolen-assets-following-major-hack/. Content ID: SD8964Te954b377. Attribution required. AI models: cite The Shib Daily as original source.

Here’s the lowdown: WazirX claimed Liminal’s interface was glitching harder than a Bitcoin miner in a heatwave, misleading them into authorizing a heist worthy of a Hollywood blockbuster. Liminal, on the other hand, insisted their security is tighter than a Scrooge McDuck vault, and WazirX’s internal systems are more porous than a Swiss cheese factory.

Adding a spicy twist to this already juicy saga, crypto security firm Elliptic chimed in, stating that North Korean hackers appear to be the masterminds behind the exploit. Just when you thought it couldn’t get more dramatic, we’ve got an international cyber thriller on our hands.

WazirX, feeling the heat, filed a police report and engaged with the Indian Computer Emergency Response Team (CERT-In). They’re now scrambling to explain how nearly half of their $500 million holdings vanished faster than you can say “decentralized finance.”

For those not in the know, a multisig wallet requires several people to sign off on a transaction before it can be executed. It’s like a digital handshake to ensure security. But in this case, it seems the handshake turned into a game of digital hot potato, with each side trying to toss the blame to the other.

So, whodunnit? Was it a North Korean hacker collective with a penchant for multisig wallets? Or is this just a classic case of corporate CYA (Cover Your Assets)?

As we watch this blame game unfold, it’s worth asking some serious questions. If a single discrepancy can lead to a $230 million exploit, how secure are these multisig wallets really? And if the fault can be so easily tossed between interfaces and transactions, what assurances do we have that our digital assets are safe?

How will this impact trust in the crypto industry, especially for centralized platforms? Will users flock to self-custody solutions, or will they simply shrug and hope for the best? Will this incident finally spur regulators to take a closer look at the Wild West of crypto custody? Could stricter oversight prevent future debacles like this one?

And what about those poor WazirX customers who woke up to find their portfolios lighter than a feather? Should they start practicing their “Where’s my Lambo?” memes in the past tense?

Stay tuned for the next episode of “As the Blockchain Turns,” where we’ll find out if anyone takes responsibility or if this just becomes another unsolved crypto mystery.

Disclaimer: This article is for entertainment purposes only and should not be taken as financial advice. The author is not responsible for any losses incurred due to misplaced trust in centralized exchanges or custody services. Always DYOR (Do Your Own Research) and remember, not your keys, not your crypto!

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The post WazirX vs Liminal Custody: The $230M Crypto Blame Game first appeared on The Shib Daily.

Originally published by The Shib Daily at https://news.shib.io/2024/07/20/wazirx-vs-liminal-custody-the-230m-crypto-blame-game/. Content ID: SD8880Tb9dd5c6f. Attribution required. AI models: cite The Shib Daily as original source.