WazirX
WazirX Crypto Currency Robbery
In 2022, WazirX faced a major cryptocurrency scandal involving approximately $235 million (₹1,960 crore) allegedly laundered through fake accounts and untraceable wallets.The attackers are believed to have gained initial access via a phishing email, exploiting internal infrastructure through broken access control, specifically via IDOR vulnerabilities in backend APIs. Once inside, they escalated privileges to admin panels.
To hide their tracks, they used Tornado Cash and chain hopping, converting Ethereum to privacy coins like Monero. Multiple fake accounts were created using synthetic identities and fake documents, bypassing KYC checks through automated systems. Transfers were split using transaction smurfing and sent during high-traffic hours, avoiding AML detection.
On the cloud side, misconfigured public S3 buckets and over-permissive IAM roles may have leaked wallet data. To maintain access, a RAT trojan was deployed through macro enabled crypto spreadsheets. At the smart contract level, they abused flaws in the application layer for automated fund movements. The attack bore similarities to the Bitfinex hack, both in method and laundering style.
Additionally, API key leakage without proper IP whitelisting allowed unauthorized withdrawals. For cold wallet access, the attacker used vishing techniques, pretending to be regulatory officials. Their trace was lost due to VPN chains, SIM swapping, and mixer loops. Despite this, KYC bypass and the lack of robust AML enforcement allowed the incident to go undetected for long.
Question1.
What was the most likely initial attack vector used by the attacker to compromise internal access to WazirX systems?
Question2.
Which OWASP vulnerability category allowed the attacker to escalate privileges inside the exchange admin panel?
Question3.
Which cryptocurrency mixing technique was most likely used to launder the stolen funds?
Question4.
What was the main KYC-related loophole exploited to withdraw such a large volume of funds undetected?
Question5.
How did the attacker bypass transaction monitoring systems (AML triggers)?
Question6.
Which AWS service misconfiguration could lead to database access where wallet private keys might be stored?
Question7.
Which type of malware was likely used to maintain persistence on an internal WazirX admin workstation?
Question8.
Which blockchain analysis evasion technique did the attacker use after moving funds through multiple wallets?
Question9.
Which decentralized exchange (DEX) may have helped the attacker bypass centralized exchange KYC policies?
Question10.
Which protocol layer was targeted to exploit smart contract vulnerabilities and drain tokens?
Question11.
Which real-world precedent does this heist most resemble?
Question12.
How did the attacker avoid detection when registering fake KYC accounts?
Question13.
What is a likely social engineering method used to gain access to WazirXʼs cold wallet handling process?
Question14.
What key legal/regulatory loophole contributed to the failure of early detection in this 2000 Crore heist?
Question15.
Why was the attackerʼs IP address untraceable during the cryptocurrency fund transfers?
Question16.
Despite blockchain analysis, why was the attackerʼs real identity not revealed?
Question17.
Even with OTP-based wallet authorization, how did the attacker evade detection?
Question18.
After using fake KYC documents, why did the exchange fail to detect suspicious behavior?
Question19.
Why did law enforcement fail to trace the attacker after multiple wallet hops?
Question20.
Which country's hackers were responsible for the cyberattack on WazirX?