As a seasoned cybersecurity analyst with extensive experience in blockchain forensics and incident response, I believe that WazirX’s decision to increase the White Hat recovery bounty reward by 10% is a prudent move in light of the recent cyber attack that resulted in the theft of over $230 million. The exchange’s quick response and transparency in communicating with the public are commendable, as they recognized the importance of community involvement in resolving such complex issues.


WazirX has increased its White Hat recovery reward by 10%, which is now worth $23 million.

After a devastating cyberattack, more than $230 million was stolen from a multi-signature wallet.

WazirX Increases Bounty Reward

The exchange introduced a Bounty Program as a means to recoup lost funds, inviting international collaboration from ethical hackers, cybersecurity professionals, and blockchain experts. They initially offered a 5% reward, equivalent to $11.5 million. Following recommendations from renowned blockchain investigator ZachXBT, they subsequently boosted the reward to 10%.

In response to Zachxbt’s comments, we’ve bumped up the White Hat Recovery reward to a generous 10% or approximately $23 Million.

White hat hackers, blockchain investigation specialists, and cybersecurity pros are welcome to collaborate with us on this essential project, safeguarding the security and authenticity… (of a specific thing or system)

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) July 21, 2024

WazirX has designed two distinct bounty programs. The first one, named “Track and Freeze,” rewards individuals up to $10,000 in USDT for providing information that enables freezing of stolen funds. The second one is called “White Hat Recovery,” offering a 10% share of the recovered amount to those capable of returning the stolen funds.

As an analyst, I would express it this way: The bounty program commences three months after its announcement. Nevertheless, its duration may be subject to modification depending on the outcomes and evolving needs.

After the hack, WazirX paused trading to deal with the challenge of keeping an equal balance between cryptocurrency tokens and underlying assets.

WazirX’s Founder Says it Was Not Phishing Attack

Nischal Shetty, the founder of WazirX, has made it clear on their platform that the recent security breach was not due to a phishing attack. Instead, he described the incident as follows: Three distinct devices belonging to WazirX, each with its own hardware wallet and located in various spots, and one from Liminal, their custodial service, were involved in the unauthorized transaction.

According to our initial examination, no indications of hacking were detected in WazirX’s systems. A thorough investigation by an external forensic team is currently being conducted to verify these findings.

Shetty went on to clarify that the security of the three wallets’ hardware keys was not jeopardized during the attack. This is because the hack necessitated four distinct signatures from two separate entities – WazirX and Liminal – located in different areas. The teams from both companies confirmed they had not suffered any breaches.

WazirX has taken action by filing reports with the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In), as well as reaching out to more than 500 other exchanges, in order to prevent transactions from identified suspect addresses.

The platform is currently undergoing a thorough investigation into security vulnerabilities and is performing a comprehensive data analysis for the purpose of enhancing security measures and resuming regular functions. Users can expect their withdrawal processes to be reinstated soon.

Recently, Shetty acknowledged the team’s dedication in addressing the problem through a tweet, assuring that while it may take some time, they are determined not to give up.

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2024-07-22 18:09