WazirX Faces Major Security Breach, Loses $234 Million In Digital Assets

India's largest crypto exchange, WazirX, experienced a significant security breach on Thursday, resulting in the loss of $234 million worth of digital assets.

This incident has led the exchange to suspend withdrawals until further notice. The stolen amount represents nearly half of WazirX's total assets, prompting some crypto executives to warn investors about market volatility following the breach.

“We’re aware that one of our ‘multisig’ wallets has experienced a security breach. Our team is actively investigating the incident. To ensure the safety of your assets, INR and crypto withdrawals will be temporarily paused,” the company said in a statement.

A 'multisig' or multisignature wallet is a type of crypto wallet that requires two or more private keys to unlock and withdraw funds. Liminal Custody, one of the platforms servicing WazirX's wallets, stated that its platform was not affected by the security breach.

“We can confirm that Liminal’s platform is not breached and Liminal’s infrastructure, wallets and assets continue to remain safe,” the company said in a press statement.

The company has pledged to provide updates as the investigation continues. The duration of the withdrawal suspension and the measures to address the security breach and protect user assets are yet to be determined.