Over the past day, X users have raised concerns over a phishing email in the wake of the recent $1 million hack of cryptocurrency exchange WazirX. The development comes as WazirX management is implementing several measures to recover the stolen funds.
Criminals are exploiting the WazirX hack using phishing scams
On July 18, Indian exchange WazirX was hit by a sophisticated attack where hackers breached the security of one of the exchange’s multi-currency wallets, resulting in the loss of $235 million in assets. In the wake of this incident, it appears that malicious actors are now trying to exploit the situation to their advantage.
In a post on X on July 19, an account named Aditya Chakraborty posted: subscriber Screenshots of an email from a stranger pretending to be WazirX. In the email, the suspicious entity claims that the exchange will compensate users affected by the hack by launching a new token known as WZA.
Email text:
In response to this hack, WazirX is implementing a comprehensive compensation plan to ensure our users are compensated. We are introducing a new token, WZA, which will be distributed 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 sign up and initiate the payment process. However, Chakraborty and other X users were able to flag the email as fake and likely a scam.
Commenting on the July 20 post, Sumit Gupta, CEO of Indian exchange CoinDCX, said: push hard He urged cryptocurrency users to be cautious and verify the authenticity of all emails they receive. To do this, he advised them to check the sender’s email and the authenticity of any website links.
WazirX Launches Asset Redemption Bounty Program
In a post on X on Saturday, Nishal Shetty, CEO of WazirX, said: subscriber The exchange is now taking several steps to recover stolen assets following the hack that occurred on July 18. Shetty explained that WazirX is working to determine the full extent of the security bridge and has engaged experts to help track the ongoing transfer of stolen funds.
The WazirX team is actively working on the next steps.
1. We are preparing a rewards program to help us freeze/recover stolen assets.
2. For further discussions on continuous tracking of money movement, we are in contact with a few teams who claim to be experts in this matter.
3. We have informed everyone…— Nischal (Chardium) 🔼 (@NischalShetty) July 20, 2024
Furthermore, WazirX has also reached out to other exchanges for assistance while following all applicable law enforcement and regulatory protocols. Finally, the Indian exchange is preparing to launch a bounty program that will intensify collective efforts to recover the loot. A bounty in this context refers to a set amount of money given to independent experts to track down hackers and recover stolen funds. It is most often a fixed percentage of the initial loot.
Featured image from CSO Online, chart from Tradingview