On Thursday, July 18th, Indian cryptocurrency exchange WazirX was detected to be transferring funds of 0.2349 billion US dollars to an unknown wallet.

Blockchain security company Cyvers first detected this anomaly and found that WazirX's Safe Multisig wallet on the Ethereum network was the sender.

Cyvers expressed concern and stated that WazirX Safe wallet may have been invaded by potential malicious entities.

After this fund was transferred to a new address, this address began a series of cryptocurrency conversions. Cyvers report pointed out that "suspicious addresses have exchanged PEPE, GALA, and USDT for ETH, and continue to exchange other digital assets."

Cyvers suspects that this is a hacker attack. This anomaly has also triggered a danger alert on the Cyvers website, indicating that it may involve cryptocurrency money laundering.

In response to security vulnerabilities, WazirX Exchange has now suspended the withdrawal of cryptocurrencies and Indian rupees on its platform.

In the official post, the WazirX team explained that they are actively investigating this incident and will release updates as the situation develops.

This incident is the second largest cryptocurrency hack of 2024, second only to the security vulnerability of Japan's cryptocurrency exchange DMM Bitcom in May, which caused losses.

Currently, India's cryptocurrency market is still a tricky area. Although the Indian government has been discussing for nearly four years, the regulatory framework for the Indian cryptocurrency market is still uncertain.

On March 21st, the Financial Intelligence Unit (FIU) of India's Ministry of Finance issued a compliance notice to several foreign cryptocurrency exchanges including OKX, requiring Indian OKX users to close their accounts and redeem their funds before April 30th, as the exchange previously stated that it would "no longer provide services to Indian users."