Published on juli 19, 2024, 12:32 am
Image source: Fox News
```json [ "TLDR: A $235 million breach at WazirX exchange linked to North Korean hackers, temporary withdrawal freezes enacted. India's crypto industry concerned about strict tax regulations. South Korea implements laws to protect virtual asset users. Challenges highlighted by involvement of Huione Guarantee in money laundering activities.", "India imposing heavy taxes on digital assets causing decline in trading volumes and active users. South Korea enacts laws to safeguard virtual asset users from unfair trading practices." ] ```
A major breach at the WazirX crypto exchange involving $235 million has been linked to the Lazarus Group, a North Korean hacking organization, by Mudit Gupta, Chief Information Security Officer of Polygon Labs. Gupta revealed that the hackers had been preparing for the attack by practicing onchain for at least eight days before executing it. The breach involved manipulating the multisig wallet to drain funds, suggesting a sophisticated operation.
In response to the incident described as a “force majeure event beyond our control” by WazirX, temporary withdrawal freezes were put in place as part of damage control efforts. The cryptocurrency industry in India is closely monitoring the country’s strict crypto tax regulations ahead of Finance Minister Nirmala Sitharaman’s upcoming budget announcement.
Since 2022, India has imposed a 30% capital gains tax on profits from digital assets and a 1% tax deduction on crypto transactions. Industry players are advocating for a reduction in the TDS rate to attract back businesses that have shifted to offshore exchanges due to heavy taxation. Reports indicate a significant decline in trading volumes and active users following these stringent tax measures.
On another note, South Korea has enacted laws aimed at protecting virtual asset users by safeguarding their assets and prohibiting unfair trading practices. These regulations require companies to segregate user deposits from company funds, store a large portion offline, and take measures against hacking incidents or system failures.
The involvement of Huione Guarantee, an online marketplace linked to money laundering activities related to North Korean hackers, showcases ongoing challenges within the cryptocurrency sector regarding illicit activities. Investigations have connected this group with significant breaches and suspicious financial transactions emphasizing the need for increased security measures and regulatory oversight.
Original article posted by Fox News
