Hey crypto community, we’ve got some major updates coming from WazirX, one of India’s top cryptocurrency exchanges. 🚨 After a staggering $235 million hack that rocked the platform in July 2024, WazirX is taking significant steps to address the situation and restore user confidence.
WazirX’s Big Move: Reversing Trades and Restoring Balances
On August 8, WazirX announced that they’ll be reversing trades executed after their withdrawal suspension on July 18. This decision comes as part of their efforts to correct the damage caused by the breach and ensure a fair outcome for all users.
Here’s the plan: WazirX will restore portfolio balances to their status as of July 18, 2024. This means that all trades that occurred between July 18 and July 21 will be undone, and affected users will see their accounts reflect the state they were in before the hack. If you were impacted, keep an eye out for an email notification detailing the trades that will be reversed.
WazirX clarified that all fees and referrals linked to these transactions will also be reversed. And if you managed to deposit any fiat or crypto after July 18, the exchange promised to address those deposits in a future update.
Why Is WazirX Reversing Trades?
The move to reverse trades and restore balances is aimed at creating a fair resolution for users affected by the hack. According to WazirX, the goal is to ensure that all users are treated equitably following the abnormality caused by the breach. By canceling trades post-July 18, they hope to level the playing field for everyone affected.
What Happened? A Breakdown of the Hack
WazirX, which was founded in 2017, is one of India’s major crypto exchanges. The hack, which was first reported on July 18, involved a hefty $234.9 million theft. The Web3 security firm Cyvers identified “multiple suspicious transactions” connected to WazirX’s Safe Multisig wallet on Ethereum.
A multisignature wallet—often called a multisig or shared wallet—is a type of crypto wallet that requires multiple signatures to approve a transaction. WazirX’s multisig wallet had six signatories: one from Liminal, the digital custody platform they used, and five from WazirX itself.
The hack was traced back to discrepancies between the data shown on Liminal’s platform and the actual transactions on WazirX. While Liminal employees argued that their platform wasn’t compromised, WazirX contended otherwise. Liminal later released a report suggesting that the hack might have been due to compromised WazirX machines.
As a result of the breach, the attacker made off with at least $100 million in Shiba Inu (SHIB) and $52 million in Ether (ETH). This loss represented a whopping 45% of WazirX’s reserves.
Looking Ahead
WazirX’s decision to reverse trades and restore account balances is a crucial step in addressing the fallout from this massive hack. It’s a challenging situation, but the exchange’s efforts to rectify the issue and ensure fairness for their users are commendable.
As the situation evolves, stay tuned for more updates and keep your eyes on your WazirX account for any new information or changes. 🚀
