The cryptocurrency market experienced a significant jolt today as news broke of a major security breach at WazirX, India's largest cryptocurrency exchange. The hack resulted in the theft of approximately $234.9 million worth of various cryptocurrencies, including Shiba Inu (SHIB).
The exploiters targeted WazirX's multisig hot wallet on the Ethereum network, executing multiple suspicious transactions. These transactions, funded through Tornado Cash, a privacy-focused protocol, saw a significant amount of SHIB tokens being transferred to a new address.
As the news of the hack spread, the price of Shiba Inu (SHIB) took a sharp downturn. SHIB experienced a substantial decline of 6.87% from the start of today's trading session, with its price quoted at $0.0000173 per token.
The situation worsened as reports emerged that the exploiters had already sold a considerable amount of the stolen SHIB tokens, approximately 35 billion, equivalent to around $700,000. This massive sell-off further contributed to the downward pressure on SHIB's price.
With a staggering 5.4 trillion SHIB tokens still in the exploiters' possession, concerns are growing regarding the potential for further price declines. If the exploiters continue to liquidate their stolen holdings, SHIB's price could face additional downward pressure in the coming days.
The incident has raised significant concerns about the security of cryptocurrency exchanges and the vulnerability of hot wallets. It highlights the need for robust security measures to protect user funds and prevent such exploits from occurring in the future.
While the hack has undoubtedly had a negative impact on Shiba Inu's price in the short term, the long-term outlook for the cryptocurrency remains uncertain. The incident serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of due diligence and risk management.
As the cryptocurrency market continues to evolve, it is crucial for investors to remain vigilant and stay informed about potential risks. While the WazirX hack is a setback for the Shiba Inu community, it also presents an opportunity for the project to address security concerns and strengthen its infrastructure to prevent similar incidents in the future.
July 2024, Cryptoniteuae