WazirX Halts Operations After $234.9M Hack, Partners With Zodia Custody For Relaunch
1min read WazirX, a prominent Indian cryptocurrency exchange, was forced to halt its operations on July 18, 2024, following a significant hack by the Lazarus Group, a notorious North Korean hacker collective. The attack resulted in the theft of at least $234.9 million, which was subsequently transferred to an address controlled by the hackers. This incident led to a complete shutdown of the exchange and a substantial loss of confidence among its users.
The exchange has since been working diligently to prepare for its relaunch. In a newsletter released on July 25, 2024, the WazirX team confirmed the attack but refuted rumors of the platform's total collapse. They asserted that the core framework of the platform remained intact and expressed optimism about resuming operations in the near future. The exchange has since revamped its security framework to prevent future breaches and is now gearing up for a relaunch.
One of the key steps WazirX has taken to regain trust is its partnership with Zodia Custody, a highly trusted digital asset custodian. Zodia Custody is backed by major financial institutions, including Standard Chartered, northern trust, SBI Holdings, National Australia Bank, and Emirates NBD. This partnership is expected to significantly enhance WazirX's security measures and help rebuild user confidence. Zane Suren, Managing Director, Commercial, MEA at Zodia Custody, emphasized that the organization would empower WazirX and its users to engage with digital assets securely and in compliance with local regulations. Zodia Custody's SOC 1 Type I and SOC 1 Type II accreditations further ensure that WazirX users will be protected from potential hacking threats.
Nischal Shetty, the co-founder of WazirX, has expressed confidence in the partnership's ability to rebuild trust and confidence among users. Shetty, known for his entrepreneurial spirit and passion for technology and blockchain, founded WazirX in 2018 with the mission of involving every Indian in the blockchain revolution. His leadership and the team's dedication to innovation have been instrumental in WazirX's growth and success. Shetty's vision and the exchange's commitment to security and compliance are crucial in navigating the challenges ahead and ensuring a successful relaunch.
