WazirX Hack: X Users Raise Alarm Over Scam Email

In the last day, X users have raised concern over a scam email following the recent million-dollar hack of the cryptocurrency exchange WazirX. This development comes as the management of WazirX rolls out several measures to recover the stolen funds.

Malicious Actors Exploit WazirX Hack With Phishing Scams

On July 18, Indian exchange WazirX fell victim to a sophisticated attack as hackers breached the security of one of the exchange’s multisg wallets, resulting in the loss of about $235 million worth of assets. Following this incident, it appears that bad actors are now attempting to exploit the situation to their advantage.

In an X post on July 19, an account with the name Aditya Chakraborty shared screenshots of an email from a strange party posing to be WazirX. In this email, this suspicious entity claimed the exchange would offer compensation for affected users of the hack through the launch of a new token known as WZA. 

The email read: 

In response to this breach, WazirX is implementing a comprehensive reimbursement plan to ensure our users are compensated. We are introducing a new token, WZA, which will be airdropped to all affected users. The distribution will be based on the value of assets lost in the hack, and we aim to start this process within the next 30 days. 

Furthermore, the email also provided a website for users to engage and commence the reimbursement process. However, Chakraborty and other X users have been able to tag the email as fake and likely a scam. 

Commenting on the post on July 20, Sumit Gupta, CEO of fellow Indian exchange CoinDCX, has nudged cryptocurrency users to remain vigilant and verified the validity of all received emails. To do so, he advised them to cross-check the sender’s email and the authenticity of any website link.

WazirX To Launch Bounty Program To Recover Assets

In an X post on Saturday, Nischal Shetty, CEO of WazirX shared several steps the exchange is now taking to recover the stolen assets following the hack on July 18.  Shetty stated that WazirX is determining the full extent of the security bridge and has also contacted experts to help continuously trace the transfer of the stolen funds.

WazirX Team is actively working on next steps.

1. We’re preparing a bounty program to help us freeze/recover the stolen assets2. Further discussions on continuous tracing of fund movements, we’re in touch with a few teams that claim to be experts at this.3. We’ve informed all…

— Nischal (Shardeum) (@NischalShetty) July 20, 2024

Furthermore, WazirX has also reached out to other exchanges for aid while following all laid down law enforcement and regulatory protocols. Finally, the Indian exchange is preparing to launch a bounty program that will intensify collective efforts to retrieve the loot.  A bounty in this context refers to a specific amount given to independent experts to track down hackers and reclaim the stolen funds. It is most times a fixed percentage of the initial plunder.