WazirX Hack: What Happened and How It Changed Crypto Security

When the WazirX hack, a major cryptocurrency exchange breach that occurred in June 2020, resulting in the theft of over $230 million in digital assets. Also known as the WazirX crypto theft, it exposed critical flaws in how many exchanges handled user funds and security protocols. This wasn’t just another random hack—it was a wake-up call for the entire crypto industry. WazirX, once India’s largest crypto exchange, had built its reputation on fast trades and easy fiat on-ramps. But behind the scenes, its hot wallet system was poorly protected. Attackers exploited a single point of failure: a compromised private key. No complex phishing, no smart contract漏洞—just a basic security lapse that cost users millions.

The crypto exchange hack, a deliberate breach targeting centralized platforms to steal user deposits or exchange reserves. Also known as exchange theft, it’s one of the most feared events in crypto didn’t just hurt WazirX users. It shattered trust in Indian crypto platforms and triggered a wave of withdrawals across other exchanges. The hack forced regulators to take notice. India’s crypto community, already under pressure from ambiguous tax rules, now faced even more skepticism from the public. Meanwhile, exchanges like Binance and CoinDCX scrambled to prove their security. Many moved to multi-sig wallets, began using cold storage for the majority of funds, and started publishing proof-of-reserves audits. The WazirX security, the set of practices and technologies used to protect user assets on the WazirX platform before and after the 2020 breach. Also known as exchange security measures, it became a textbook case of what not to do was a mess before the hack—and only improved because users demanded change.

The cryptocurrency theft, the illegal acquisition of digital assets through hacking, phishing, or insider fraud. Also known as crypto robbery, it remains one of the top risks for traders didn’t end with WazirX. But it did change how people think about custody. After the hack, more users started moving funds to non-custodial wallets. More platforms began offering insurance funds. And more exchanges started working with blockchain forensic firms like Chainalysis to track stolen coins. The exchange vulnerabilities, weak points in centralized crypto platforms that make them targets for attackers. Also known as exchange security flaws, they’re still around today—but less common because of lessons learned are still out there. But now, you know what to look for: no proof-of-reserves? Red flag. Hot wallets holding most of the funds? Big risk. No public security audits? Walk away.

Below, you’ll find real stories and breakdowns of what happened after the WazirX hack—how users got compensated (or didn’t), how the exchange recovered, and how similar attacks have played out since. No fluff. Just facts, lessons, and what you need to know to protect your own crypto.