Asia Express: WazirX Hackers Planned Attack 8 Days in Advance, Scamming with Fake Fiat for USDT

WazirX hackers were preparing 8 days before the $235M theft

• The hackers behind the $235 million WazirX crypto exchange breach began preparing onchain at least eight days prior, according to Polygon Labs’s security chief.
• WazirX, one of India’s largest cryptocurrency exchanges, lost hundreds of millions to a multisig wallet hack on Thursday, July 18, which is being blamed on North Korean hacking organization Lazarus Group.
• Mudit Gupta, the Chief Information Security Officer of Polygon Labs, suggests the hackers had started “practicing” the hack onchain more than a week prior to executing the attack.

India’s crypto sector holds breath for tax relief

• Elsewhere in India, the cryptocurrency industry is eagerly hoping for relief from the country’s stringent crypto tax regulations, with India Finance Minister Nirmala Sitharaman set to present the Union Budget for the next fiscal year on July 23.
• Since 2022, India has slapped one of the world’s most severe tax regimes on cryptocurrency, with a flat 30% capital gains tax on profits from digital assets, including non-fungible tokens (NFTs).
• Sumit Gupta, CEO of CoinDCX, an exchange involved in pre-budget consultations, says this adjustment is seen as crucial to recapturing business that has shifted to offshore exchanges due to current heavy taxation.

More arrests in Hong Kong over fake cash for USDT scam

• Hong Kong authorities have arrested three more suspects for allegedly selling counterfeit banknotes in exchange for stablecoin Tether (USDT).
• The businessman then received three bundles of 1,000 Hong Kong dollar notes, with the counterfeit notes sandwiched by genuine bills.
• This case bears a striking resemblance to an incident in April 2024 when a victim was scammed for $128,000 (1 million Hong Kong dollars).

Insider crypto trading in South Korea can now land you life in prison

• South Korea’s cryptocurrency investor protection law will officially come into force on Friday, July 19.
• The “Act on the Protection of Virtual Asset Users,” enacted on July 18, 2023, aims to safeguard crypto investors’ assets and prohibit unfair trading practices.
• The law prohibits activities such as using undisclosed information for trading (insider trading), market manipulation, and fraud. Violations can result in severe penalties, including criminal charges and fines.

Hackers send stolen crypto to marketplace with ties to Cambodia PM’s family

• North Korea’s Lazarus Group is suspected of laundering at least $35 million in USDT on Tron so far this month through the online Cambodian marketplace Huione Guarantee.
• According to ZachXBT, offchain indicators and laundering techniques suggest that the Lazarus Group is the prime suspect in the DMM hack.
• An investigation by blockchain forensics firm Elliptic alleges that Hun To, a cousin of Cambodian Prime Minister Hun Manet, is one of the directors of Huione Pay.

Yohan Yun

Yohan Yun is a multimedia journalist covering blockchain since 2017. He has contributed to crypto media outlet Forkast as an editor and has covered Asian tech stories as an assistant reporter for Bloomberg BNA and Forbes. He spends his free time cooking, and experimenting with new recipes.