Shiba Inu’s SHIB token experienced a sharp 10% decline following a major security breach at WazirX, India’s premier cryptocurrency exchange. The incident was first discovered by security firm Cyvers Alert, which estimated that the exploit led to losses exceeding $230 million in various crypto assets.
WazirX confirmed the breach in an official statement, revealing that the exchange’s security systems had been compromised. The company is currently conducting a thorough investigation to determine the full extent of the breach and to identify the vulnerabilities that were exploited. As a precautionary measure to protect user funds, WazirX has temporarily suspended all Indian rupee (INR) and cryptocurrency withdrawals.
The hack has sent ripples through the crypto community, with many investors and traders expressing concern over the security of their assets on the exchange. The rapid response from WazirX has been met with mixed reactions, with some praising the swift action to suspend withdrawals and others criticising the exchange for the lapse in security.
Shortly after news of the breach broke, prominent on-chain detective ZachXBT reported that the hacker still held substantial amounts of cryptocurrency, including $100 million in Shiba Inu (SHIB) and $4.7 million in Floki Inu (FLOKI). These revelations have further exacerbated the anxiety within the crypto community, as the significant holdings of SHIB and FLOKI by the hacker could potentially impact the prices of these tokens if liquidated suddenly.
The impact of the breach on the price of SHIB was immediate and pronounced. According to data from CoinMarketCap, the SHIB token plummeted by approximately 10% in the wake of the exploit, reflecting the market’s response to the perceived increased risk associated with the token. This decline is part of a broader trend of heightened volatility in the cryptocurrency markets following security incidents.
WazirX has assured its users that it is taking all necessary steps to address the breach and restore normal operations as soon as possible. The exchange is working closely with cybersecurity experts and law enforcement agencies to track down the perpetrators and recover the stolen assets. Users have been advised to remain patient and vigilant, and to monitor official channels for updates on the situation.
