WazirX Announces Major Bounty to Recover $100 Million in Shiba Inu (SHIB) and More

WazirX, India’s largest cryptocurrency exchange, launches a bounty program to recover $100 million in Shiba Inu （SHIB） following a major security breach.

Points

• WazirX faces a $230 million security breach, including $102.13 million in Shiba Inu.
• The exchange introduces a bounty program with rewards up to $11.5 million.
• Focus on securing recovered funds and preventing further losses.

In a significant development, WazirX, India’s largest cryptocurrency exchange, has announced a bounty program following a major $230 million security breach. The breach, which occurred this week, involved suspicious transactions from the exchange’s multisig hot wallet, resulting in the movement of nearly a quarter billion dollars worth of crypto to a new address. Notably, 5.4 trillion Shiba Inu （SHIBUSD）, valued at $102.13 million, was transferred from WazirX.

As WazirX moves forward with its recovery efforts, the focus remains on securing the recovered funds and preventing further losses. In response to the cyberattack, WazirX has unveiled a comprehensive bounty program aimed at recovering the stolen assets. This program includes two key components:

1. Track & Freeze Bounty: Offering rewards up to $10,000 worth of USDT for actionable intelligence that leads to freezing the stolen funds.
2. White Hat Recovery Bounty: Providing a 5% incentive of the recovered amount as a reward for those who assist in the recovery process.

The total bounty available for asset recovery is set at $11.5 million, as reported by Nischal Shetty, founder and CEO of WazirX. Shetty emphasized that the bounty program seeks to unite the community and recover the stolen funds. He noted that while the exchange explores partial withdrawals, it needs additional time to determine the best approach.

Shetty also clarified that the hack was not the result of a phishing attack. The breach required four points of failure in the signing process, involving three signatures from separate devices, each using different hardware wallets located at various sites. This complexity underscores the sophistication of the attack.

Since the incident, blockchain data indicates that the attackers have been liquidating the stolen assets for Ethereum. WazirX has suspended its platform operations, filed a police report, and notified the Financial Intelligence Unit （FIU） and CERT-In.

解説

• Security Breach Details: Understanding the specifics of the breach is crucial. The hack involved a complex process with multiple points of failure, highlighting the sophistication of the attackers.
• Bounty Program: The Track & Freeze and White Hat Recovery bounties aim to incentivize the community to help recover the stolen assets. This approach reflects a proactive strategy to mitigate the impact of the breach.
• Preventative Measures: WazirX’s response includes suspending platform operations and collaborating with law enforcement and cybersecurity experts. These steps are essential to prevent further losses and enhance future security measures.