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Will Investors Get Their Money Back?

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WazirX Hack Update: On Thursday, July 18, 2024, the Indian crypto exchange WazirX experienced a devastating security breach. The attack resulted in the loss of over $230 million worth of crypto assets. Hence, the users of the crypto exchange have been concerned about their holdings and whether CEX will be able to recover the stolen funds.

WazirX Hack: What Exactly Happened?

WazirX announced via their social media platform X that one of their multisig wallets had been compromised. This wallet was secured using Liminal’s digital asset custody and wallet infrastructure, and it had been in operation since February 2023. The wallet required multiple signatories for transaction approval—three from WazirX and one from Liminal.

However, despite these security measures, the attackers exploited a discrepancy between the data displayed on Liminal’s interface and the actual transaction contents. This allowed the attackers to replace the transaction payload, thereby gaining control over the wallet.

The breach specifically targeted WazirX’s Ethereum multisig wallet, affecting both Ethereum (ETH) and ERC-20 tokens. The attackers managed to steal 15,298 ETH directly. The exploiter subsequently swapped other assets such as Shiba Inu (SHIB), Polygon (MATIC), and Pepe Coin (PEPE) tokens, amassing a total of 59,097 ETH, valued at $218 million at press time.

WazirX Provides Update On Hack & Takes Immediate Action

In response to the breach, WazirX swiftly paused INR and crypto withdrawals to protect remaining assets. Furthermore, they filed a police complaint and reported the incident to the Financial Intelligence Unit (FIU) and CERT-In, India’s nodal agency for responding to cyber incidents. In addition, WazirX also reached out to over 500 exchanges to block the identified addresses involved in the theft.

Moreover, many exchanges reportedly are cooperating with the investigation. WazirX’s preliminary findings and ongoing investigations point to a sophisticated cyber attack that exploited the interface and transaction verification process managed by Liminal.

Both WazirX and Liminal have engaged in a blame game, each accusing the other of lapses in security. Liminal maintains that their infrastructure was not compromised. Additionally, they accused that the breach occurred due to vulnerabilities on the exchange’s side.

Also Read: Just In: Liminal Claims No Responsibility in $230M WazirX Wallet Hack

The Recovery Efforts By WazirX

The path to recovery for the stolen funds is fraught with challenges. On-chain analytics firm Spot on Chain reported that the hacker’s Ethereum holdings have significantly increased following the liquidation of stolen assets. Notably, the hacker has used Tornado Cash, a mixing service, to obscure the origin and destination of funds. This complicates efforts to trace and recover the assets.

In another update on the hack, WazirX has stated that they are working with forensic experts and law enforcement agencies. They aim to track the stolen funds and identify the perpetrators. They have also received support from the crypto community. Hence, multiple individuals and entities offering assistance in the fund recovery process.

Despite these efforts, the nature of the cyber attack and the use of mixing services like Tornado Cash make the recovery of stolen assets a daunting task. However, the majority of the stolen funds, converted to Ethereum, still reside in the hacker’s wallet.

The embargo on these wallets by different crypto exchanges could have led to the funds remaining stagnant. This rightly offers some hope of successful recovery of funds. Nevertheless, if the WazirX hacker manages to transfer the ETH funds to Tornado Cash, chances of a recovery may become slim.

Adding another layer of complexity to the situation, the notorious North Korean hacker group Lazarus is suspected of being behind the WazirX exploit. This group has been linked to numerous high-profile cyber attacks targeting crypto exchanges and financial institutions worldwide. If Lazarus is indeed involved, it underscores the sophisticated and international nature of the threat. This could further complicate the recovery efforts.

Here’s What WazirX Investors Need To Know

For WazirX investors, the immediate concern is whether they will get their money back. Here are the key factors that will influence the outcome:

1. Tracing & Recovery Efforts:

The success of forensic investigations and collaborations with law enforcement and other exchanges will be critical. Identifying the flow of funds and freezing or recovering assets requires advanced cyber forensic techniques and international cooperation. Since, WazirX’s update on hack indicates an active participation of the forensic team, there is a high chance investors might be able to get back their money.

2. Community Support:

The involvement of the entire crypto community, including exchanges and blockchain analytics firms, can significantly enhance the chances of tracing and recovering the stolen assets. Moreover, the Indian exchange has contacted over 500 CEXs for cooperation, which could expedite recovery.

3. Legal Actions:

The outcome of legal actions taken by WazirX, including their police complaint and reports to regulatory bodies, will also play a crucial role. These actions can help in apprehending the perpetrators and potentially recovering some of the stolen funds.

4. Compensation Plans:

In the event that the stolen funds cannot be fully recovered, WazirX may need to come up with compensation plans for affected investors. This could involve leveraging insurance policies, setting up a recovery fund, or other ways to mitigate the impact on investors.

5. Use of Tornado Cash:

The notorious crypto mixer has been used by WazirX exploiters. Hence, if they are successful in transferring the stolen crypto assets to Tornado Cash, a recovery might be next to impossible. Thus, the exchange needs to freeze the exploiter wallets and recover the funds before such a mishap occurs.

6. Not An Inside Job:

Nischal Shetty, founder of WazirX, refuted claims of an insider being involved in the hack. If it were an inside job, the recovery could have been way easier. However, the involvement of a sophisticated hacker group and platforms like Tornado Cash makes it complicated.

In a post on X, he clarified, “The cyber attack stemmed from a discrepancy between the data displayed on Liminal’s interface and the transaction’s actual contents. During the cyber attack, there was a mismatch between the information displayed on Liminal’s interface and what was actually signed. We suspect the payload was replaced to transfer wallet control to an attacker.”

Also Read: WazirX Hack Update: Firm Working With 500 Exchanges And FIU To Recover Funds

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Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Dogecoin Code Appears In CyberTruck And Model 3 Website, Will Tesla Accept DOGE Payments For Cars Soon?

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Dogecoin enthusiasts recently reignited discussions on the meme coin’s future after an observation shared on the social media platform X. KrissPax, a Dogecoin enthusiast, highlighted a curious detail that showed that DOGE is the only cryptocurrency currently embedded in the payment code for Tesla’s Cybertruck and Model 3 vehicles. Interestingly, this plays into the current bullish sentiment surrounding DOGE and rumors about Tesla’s plans to officially accept DOGE as a payment method.

Dogecoin Code In Tesla’s Payment: A Long-Standing Detail Revisited

The inclusion of Dogecoin in Tesla’s payment infrastructure has been known for some time, but the timing of its renewed focus has drawn attention. Notably, it comes during a notable price correction for the meme cryptocurrency. 

Back in October 2023, reports surfaced about mentions of DOGE in the source code of Tesla’s Cybertruck checkout page. Particularly, crypto influencer MartyParty identified over 50 references to Dogecoin within the code.

However, the renewed interest stems from a recent post by Dogecoin enthusiast KrissPax on the social media platform X. He highlighted the presence of a DOGE code in Tesla’s payment systems, stating:

“Just remember, there is Dogecoin in the Cybertruck and Model 3 Tesla payment codes. Not any other crypto – just Dogecoin. Just waiting for Tesla to turn this option on!”

Although Tesla’s Cybertruck has since been launched, this year, the DOGE payment feature has not yet been activated. Nonetheless, its presence in the code suggests that Tesla is keeping the door open to allow DOGE transactions in the future.

What Does This Mean For DOGE?

Tesla CEO Elon Musk has long been a vocal supporter of Dogecoin, often relaying its use for everyday transactions. His enthusiasm for DOGE has been evident through numerous public endorsements, including Tesla’s decision in January 2022 to start accepting DOGE as payment for select merchandise. This endeavor created some sort of utility for DOGE, which is known for its meme status.

However, a final integration of DOGE as a payment method for Tesla cars would be the final straw in the electric vehicle maker’s creation of utility for the meme coin. A move of such magnitude would not only improve Dogecoin’s adoption but also open it up to another path of inflows, which would in turn benefit its price growth. Furthermore, other companies could follow in the footsteps of Tesla and make DOGE a payment method.

Interestingly, such a move would not be the first time Tesla accepted crypto payments for its vehicles. Back in 2021, Tesla started allowing customers to use Bitcoin as a form of payment. However, the initiative was short-lived, as Tesla discontinued Bitcoin payments just months later due to environmental concerns over the growing energy consumption of Bitcoin mining and transactions. 

At the time of writing, the Dogecoin price is trading at $0.3842, down by 0.92 and 1.69% in the past 24 hours and seven days, respectively.

Dogecoin price chart from Tradingview.com
DOGE price holds at $0.38 | Source: DOGEUSDT on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com



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5 Key Indicators To Watch For Ethereum Price Rally To $10K

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The Ethereum price has surged more than 7% recently, with recent indicators hinting towards a potential ETH rally to $10K ahead. Notably, the recent surge also indicates a bullish momentum for the crypto ahead. So, here we explore some of the top indicators that could propel an ETH price surge ahead.

5 Indicators To Watch For Ethereum Price Rally Ahead

A recent X post from top on-chain analytics platform IntoTheBlock highlighted that Ethereum often follows Bitcoin’s rallies. While mixed signals exist, certain metrics suggest optimism. The platform noted that whales continue accumulating ETH, indicating confidence in the asset’s long-term growth. Increased transaction volumes and minimal selling pressure from holders are also contributing to Ethereum’s positive outlook.

Ethereum price IntoTheBlockEthereum price IntoTheBlock
Source: IntoTheBlock, X

In addition, one critical indicator is daily transactions, which recently rose to 1.22 million from 1.1 million three months ago. This slight uptick reflects growing network activity and rising demand for Ethereum.

Another key metric is large holder netflow, which tracks the buying activity of whales. When whales accumulate, it reduces sell-side pressure and supports price appreciation. Short-term holder behavior also warrants attention.

Meanwhile, increased activity among short-term investors often aligns with heightened retail interest. The holding time of transacted coins is another bullish sign. A steady hold time suggests that long-term investors are retaining their assets, keeping supply constrained as demand grows.

Lastly, exchange flows reveal sentiment trends. Significant outflows from exchanges typically indicate accumulation, signaling confidence among investors.

Ethereum priceEthereum price
Source: IntoTheBlock, X

ETH Rally To $10K Imminent?

ETH price today was up nearly 8% and exchanged hands at $3,343, while its one-day trading volume rocketed 61% to $45.19 billion. In addition, Ethereum Futures Open Interest also rose more than 13%, indicating a strong market confidence towards the crypto.

Amid this, a top crypto market expert predicts ETH price to hit $10K in the coming days, sparking market speculations. However, despite that, a recent Ethereum price analysis hints that the top altcoin should soar past the $4K mark, before its further rally.

Having said that, a flurry of crypto market experts anticipates the crypto to continue its rally in the coming days. In addition, as BTC hits a new ATH recently, the market pundits expect the altcoins to follow suit, especially amid soaring optimism towards a clear regulatory path after Donald Trump’s election win.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
Rupam’s career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Agency Reiterates “Digital Assets Securities” As XRP Eyes $2

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Ripple SEC Lawsuit: The US Securities and Exchange Commission (SEC) hinted at “digital asset securities” claims amid the appeal in the Second Circuit Court. The move comes as XRP price surpassed $1 and expected a rally to $2 on Gary Gensler’s resignation and the end of XRP lawsuit during Donald Trump’s presidency.

US SEC Hints At Digital Asset Securities Claims In Ripple Lawsuit

In a PLI’s 56th Annual Institute speech last week, SEC Chair Gary Gensler reiterated “Bitcoin is not a security.” He also cleared the intention to continue considering XRP as security as he didn’t mention it along with “Bitcoin, ether, and stablecoins.”

“Our focus, rather, has been on some of the 10,000 or so other digital assets, many of which courts have ruled were offered or sold as securities. Putting this in context, aside from bitcoin, ether, and stablecoins, the rest of this market approximates $600 billion.”

Crypto lawyer James Murphy, also known as MetaLawMan slammed the US SEC for using the term “digital asset securities” again in an X post on Wednesday. Gensler and the SEC disregarded the court’s order on XRP security status in the Ripple SEC Lawsuit. This indicates that the agency failed to comply with its recent apology for using the term “crypto asset securities” in lawsuits.

The regulator appealed the summary judgment on XRP sales by Ripple, XRP distribution to employees and others by the company, and XRP sales on exchanges by CEO Brad Garlinghouse and Executive Chairman Chris Larsen. However, the recent crypto narratives amid President-elect Trump has sparked speculation of the end of SEC v Ripple lawsuit.

Will XRP Lawsuit Get Dismissed?

The crypto community called for the dismissal of the long-running Ripple SEC lawsuit and resignation of SEC Chair Gary Gensler. Also, Ripple CEO Brad Garlinghouse said he is expecting a resolution or end of the SEC lawsuit after Trump’s win.

Ripple CTO David Schwartz cleared that the company is legally obligated to Ripple shareholders and not XRP holders. While Ripple can work around legal clarity around XRP and digital assets, the prices of digital assets don’t depend on the efforts of the company. Schwartz and lawyers assert XRP lawsuit will likely get dismissed or settled with $125 million.

Meanwhile, lawyer Bill Morgan asserted that the price of XRP is not influenced by Ripple’s efforts as seen by long-term investors. Notably, Gensler’s hint at resignation and the potential end of Ripple SEC lawsuit triggered an XRP price rally to $1.

XRP Price Rally to $2

XRP price is currently holding at 0.702 Fib retracement level. Any strong upside momentum can trigger the next move to the $1.6–$2. The strong sentiment in the XRP community and Trump’s crypto policies will maintain bullishness in the crypto market.

Popular analyst CredibleCrypto suggests XRP will probably going to make new ATH “a lot quicker than most are expecting.” XRP/ETH just reclaimed and retested a 4-year long-range in the monthly chart, which signals a 250% higher target. He predicted a target of $2.
ImageImage

XRP price jumped over 1% in the past 24 hours and 60% in a week, with the price currently trading at $1.13. The 24-hour low and high are $1.07 and $1.15, respectively. Furthermore, the trading volume has increased by 7% in the last 24 hours, indicating a rise in interest among traders.

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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