QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
UNKNOWN
JULY 2024
GLOBAL
WASABI WALLET
DESCRIPTION OF EVENTS

"WASABI WALLET The leading Bitcoin wallet for desktop featuring coinjoin. It's free, open-source, and non-custodial. Reclaim your privacy today."
"Wasabi is a non-custodial hot wallet that requires a connection to the internet and cryptocurrency network to work. As a wallet, Wasabi values user privacy and anonymity. This is evident in its built-in CoinJoin, coin control, and Tor integration features that help to keep users and their IP addresses anonymous. This further prevents security breaches and data leaks."
"Wasabi Wallet is an open-source, non-custodial, privacy-focused Bitcoin wallet with built-in coinjoins. It is a piece of software that runs on your computer and helps you to manage your bitcoins. Although Wasabi has some very advanced magic under the hood, it is rather easy to use. You can generate a new set of seed words, or import already existing ones. With Wasabi you can receive bitcoins into your full control, and you can send them to someone else without needing permission from any other person or entity. There is also a powerful auto-coinjoin feature to help obfuscate your transaction history. You can use Wasabi to manage your hardware wallet, and it even connects to your own full node. Of course, Wasabi is libre and open-source, which means you have full control over the software you manage your money with"
"According to a message posted by Wasabi Wallet on Twitter, users have reported that a coordinator named WasabiCoordinator is gradually stealing user funds through a complex attack. Wasabi Wallet advises all users connected to this coordinator to immediately stop CoinJoin operations and announces that a new version will be released soon to prevent such attacks. Subsequently, Wasabi Wallet tweeted that there were three types of attacks in this incident: attacks on free coordinators, supply chain (GitHub) compromise, user-targeted attacks."
"We have been informed that a coordinator named WasabiCoordinator is trying to slowly siphon funds from its users using a sophisticated attack. We advise everyone connected to this coordinator to stop coinjoining immediately. We will release a new version soon preventing this."
"The new iteration of our effort to reduce trust towards coordinators. This update enforces an absolute minimum input count, stricter safeguards and also ensures that parameters used during blame rounds are accepted by the client."
Wasabi Wallet is a bitcoin wallet which supports the privacy maximizing CoinJoin protocol, which helps make it much more challenging to track the origin and destination of bitcoin which go through the wallet. This process relies on a coordinator to assist with matching users together, and for that the coordinator will typically receive a small fee. Wasabi Coordinator is one such coordinator, who promised a low fee on their website. However, they were later found to be running a sophisticated attack that maximized their fees beyond what was intended by the Wasabi Wallet software. The Wasabi Wallet software has been updated to resolve the vulnerabilities which allowed them to overcharge to such an extreme amount.
SlowMist Hacked - SlowMist Zone (Jul 11)
July 9th-10th 2024: Wasabi Wallet Security Incident Disclosure · WalletWasabi/WalletWasabi · Discussion #13249 · GitHub (Jul 11)
Wasabi Wallet Coordinator (Jul 11)
