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Cyberattack

Hacker Transfers $70 Million from UPCX in Major Security Breach

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  • Hackers exploited a contract vulnerability, forcing UPCX to halt operations.
  • UPC tokens fell 7%, highlighting Web3 security flaws behind 80% of 2024 crypto thefts.
  • Experts urge stronger protections as UPCX tracks stolen funds.

UPCX systems experienced unauthorized access by a hacker on April 1 who stole digital funds in mass quantities. Cyvers tracked an illegal transaction of 18.4 million UPC tokens, which totaled $70 million.

The hacker entered UPCX’s system through a wallet address and took advantage of the ProxyAdmin contract security weakness. The cybercriminal gained administrative control over the proxy contract when they updated it, which let them take money out. At the end of their analysis, the stolen assets were found in three management accounts but not yet transferred to other digital assets.

The UPCX system found and reported unauthorized access to important company account data. The platform blocked transactions and started looking into the security issue. They tell users that their personal funds stay safe and explain that they explore the methods used by the hacker.

UPCX Hack Triggers Market Drop

After the hacking happened, investors immediately reacted in the market. According to CoinGecko data, UPC tokens lost 7% of their value as their price declined from $4.06 to $3.77 on April first.

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Source: CoinGecko

Cyvers Chief Technology Officer Meir Dolev explained to security experts that typical investigation methods point to past breaches that started through stolen credentials or weak system access controls.

Dolev indicates that Web3 security flaws account for 80% of thefts reported in 2024 with his research. He urged for enhanced security measures to cover wallet permissions better alongside expanded multi-signature protection and active transaction monitoring.

The UPCX system lost $70 million through a hacking incident that ranks as the biggest digital currency theft of recent times. The total losses from crypto-related hacks in March were $33 million but this latest breach exceeded these figures twice over.

Security experts and the platform team members are searching for both the stolen funds and the people responsible. Despite their success in stopping blockchain crimes, crypto theft thefts become very hard to undo because crypto deals hide users’ identities.

This cyber attack proves that crypto security risks keep increasing so security methods must be strengthened to keep digital assets safe from hackers.

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WazirX Freezes $3M USDT as Major Step in Recovery from July Cyberattack

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  • WazirX froze $3 million in USDT as part of its recovery from the July 2024 cyberattack.
  • Co-founder Nischal Shetty reaffirmed the exchange’s commitment to fully recovering stolen funds.
  • CoinDCX and CoinSwitch are supporting WazirX’s recovery, with CoinSwitch offering a $70 million program for affected users.

WazirX, one of India’s leading cryptocurrency exchanges, has made a significant step towards recovering funds stolen during a cyberattack in July 2024. On January 17, the platform revealed it had successfully frozen $3 million in USDT (Tether) as part of its ongoing efforts to retrieve stolen assets. This announcement, made via an update on X (formerly Twitter), highlights the exchange’s commitment to securing user funds and restoring trust following the major breach.

The freezing of $3 million in USDT is a critical milestone in WazirX’s recovery plan, marking progress in the platform’s efforts to reverse the damage caused by the hack. In their update, WazirX emphasized that this action is a vital part of the broader strategy to safeguard user interests and recover stolen crypto. The exchange stated:

“As part of the ongoing recovery efforts following the cyberattack, $3 million USDT has been successfully frozen. This marks an important milestone in safeguarding user interests and recovering stolen assets.”

WazirX’s Continued Commitment to Recovery

Co-founder Nischal Shetty expressed that the freezing of the $3 million in USDT highlights the exchange’s unwavering dedication to fully recovering the stolen funds. Shetty reassured users that the team is doing everything possible to maximize the recovery of stolen assets, with every possible measure being explored to ensure a smooth and complete process.

In addition to the recovery of stolen funds, the exchange has taken several proactive steps to enhance user security. The exchange has implemented restructuring strategies and announced plans to launch a decentralized exchange (DEX), aimed at strengthening the overall security infrastructure. Shetty noted that the recovery process is nearing completion, and once finalized, the recovered funds will be credited back to users’ accounts.

Crypto Industry Rallying Behind WazirX

In the aftermath of the hack, the wider cryptocurrency industry has shown solidarity with the exchange, with several key players offering assistance. CoinDCX, a major crypto exchange in India, recently expressed interest in acquiring WazirX to support its recovery process. CoinDCX co-founder Sumit Gupta confirmed that his company is prepared to allocate resources to aid affected users, pending court and creditor approvals.

Gupta explained:

“Should WazirX approach us, and subject to court/creditor approvals, we are ready to step in and help. We are even willing to deploy some of our own capital to support affected users and help them recover as much of their losses as possible.”

In addition to this, CoinSwitch, another major crypto exchange, launched a $70 million recovery program named “CoinSwitch Cares” aimed at supporting WazirX users impacted by the hack. The program provides a platform for users to assess potential recoveries, deposit funds, and earn rewards.

Ashish Singhal, CoinSwitch co-founder, commented:

“The initiative is designed to offer users an opportunity to recover their losses while fostering the growth of the Indian crypto community.”

The exchange’s ongoing recovery from the $230 million hack is showing positive progress, with the freezing of $3 million in USDT signaling a major step forward. The platform’s dedicated efforts, supported by the broader cryptocurrency industry, illustrate a strong commitment to protecting users and rebuilding trust.

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