WazirX Doubles Bounty to $23M as Hacker Moves $57M Stolen Ether

In the high-stakes world of cryptocurrency, security breaches are a nightmare scenario. Recently, WazirX, one of India’s largest crypto exchanges, experienced a massive hack, losing a staggering $230 million. But the story doesn’t end there. The hacker has now moved $57 million worth of stolen Ether, prompting WazirX to ramp up its efforts with an enhanced bounty program. Let’s dive into the details of this unfolding drama.

Hacker’s Next Move: $57 Million in Ether Transferred

On July 22, PeckShield, a blockchain security firm, reported that the hacker responsible for the WazirX breach transferred 16,350 Ether (ETH), valued at over $57 million, to two new cryptocurrency addresses. The majority of these funds, exceeding $54 million, landed in an address starting with “0x58d.” This significant transfer underscores the magnitude of the breach, marking it as the second-largest crypto hack of 2024.

https://twitter.com/PeckShieldAlert/status/1815308665634914524

WazirX’s Response: Doubling Down on Bounty Programs

In response to the hacker’s movements, WazirX has intensified its efforts to track and recover the stolen assets. The exchange has significantly enhanced its bounty programs, aiming to incentivize white hat hackers and security experts to assist in the recovery process.

According to a WazirX spokesperson, 54 white hat hackers have already joined the recovery initiative across two bounty programs:

• “Track and Freeze” Bounty: This program offers up to $10,000 in Tether (USDT) for actionable intelligence that helps track and freeze the stolen funds. It’s designed for those who can provide crucial leads and information.
• “White Hat Recovery” Bounty: Aimed at ethical hackers, this bounty now rewards up to 10% of the recovered amount, with the maximum reward increased to a whopping $23 million. This program is designed to attract top-tier security experts who can actively recover the stolen assets.

The “White Hat Recovery” bounty program will run for three months from the date of the announcement, providing a limited-time window for hackers to participate and earn rewards.

Why is This Happening? A Troubling Time for Crypto

The WazirX hack is not an isolated incident. The cryptocurrency industry has been grappling with a surge in security breaches, highlighting the need for more robust security measures and increased vigilance. Shortly after the WazirX incident, Rho Markets suffered a hack that resulted in nearly $8 million in losses. Fortunately, the stolen assets were eventually returned, allowing Rho Markets to resume operations. In addition, users of the popular Telegram-based game Hamster Kombat were targeted by phishing attacks and fake airdrops designed to steal their credentials and cryptocurrency holdings.

Key Takeaways

• Enhanced Security Measures: Crypto exchanges and users must prioritize robust security measures to protect against potential breaches.
• Bounty Programs: Incentive-based programs can be effective in tracking and recovering stolen funds, leveraging the expertise of the white hat hacker community.
• Vigilance: Users should remain vigilant and cautious of phishing attacks and scams, especially in popular platforms like Telegram.

The WazirX hack serves as a stark reminder of the risks associated with cryptocurrency investments. As the industry continues to evolve, security must remain a top priority for exchanges, developers, and users alike. The enhanced bounty program offers a glimmer of hope in recovering the stolen funds, but it also underscores the ongoing battle against cybercriminals in the crypto space.