The Indian crypto sector, consisting of both national and international exchanges, is reeling from a significant cyberattack on WazirX, one of its largest platforms. The Mumbai-based exchange fell victim to cybercriminals who managed to steal over $230 million (approximately Rs. 1,924 crore) from its reserves this week. This hack has sent ripples across the market, causing considerable drops in the prices of major cryptocurrencies, including Bitcoin and Ether, on various Indian exchanges.
Despite initial fears of mass withdrawals from concerned investors, several major crypto platforms in India, such as CoinDCX and Mudrex, have reported stable activity over the past 24 hours. According to these exchanges, there has been no unusual trading or withdrawal activity following the WazirX hack.
Arjun Vijay, CEO and Founder of Giottus crypto exchange, commented on the potential fallout for WazirX, suggesting that users might migrate to other exchanges. He remarked, “The crypto sector, globally, is currently on a bull run. Internationally, BTC is trading at $64,130 (roughly Rs. 53.6 lakh). It is unlikely that investors will choose to run away from the market right now.”
In response to the breach, rival exchanges have taken to social media to reassure their users about the security of their funds. This effort aims to prevent panic and maintain trust in the broader crypto ecosystem.
However, the timing of this incident could have broader implications. It occurred just five days before the announcement of the Union Budget for FY 2024-2025 on July 23. The crypto industry has been lobbying for incentives and benefits for Web3 startups, as well as revisions in crypto taxes. The hack might influence the government’s stance on these issues, although financial authorities have yet to issue a public statement regarding the WazirX breach.
As the crypto community in India grapples with this setback, the incident underscores the need for robust security measures and regulatory clarity in the rapidly evolving digital currency landscape.