WazirX to Reverse Businesses After $235M Crypto Hack
Indian cryptocurrency exchange WazirX plans to restore the balances of all platform accounts in July 2024 following a $235 million hack that halted withdrawals.
WazirX officially announced on August 8 that it will reverse all trades that took place after the platform's ban was lifted on July 18.
“All users will have their portfolio balances on the WazirX platform restored by July 18, 2024,” the announcement said, adding that account recovery will take place over the next few days. Affected users will receive an email notification of the affected transactions.
Why are WazirX trades being copied post-hack?
According to the announcement, the decision to restore accounts and reverse some trades on WazirX is to facilitate “a fair outcome for users following the unusual problem” caused by the July hack.
WazirX will cancel trading on July 18 and July 21 to ensure “all users are treated fairly,” the company wrote on its website.
All transactions made after July 18, 07:30 am UTC will be void, and users' portfolios will be reset.
“Payments and referrals arising from such re-uploads will be converted accordingly,” WazirX explained.
Any fiat or crypto successfully deposited after July 18th will receive a “future update soon” response.
Multisig wallet variations behind WazirX's $230 million cyber attack
In the year Founded in 2017, WazirX is one of India's largest cryptocurrency exchanges.
The first reports on WazirX's $234.9 million hack appeared on July 18, when Web3 security firm Syvers revealed that WazirX's Safe Multisig Wallet had detected “several suspicious transactions” on Ethereum.
A multi-signature wallet, or multi-sig or shared wallet, is a crypto wallet that requires multiple signatures to execute and process a crypto transaction. In the case of WazirX, the MultiSig wallet had six signers, one from Liminal and five from WazirX.
Related: WazirX Launches Fund Recovery Plan in $230M Hack
According to an official communication from WazirX, the breach of the exchange's wallet was caused by discrepancies between the information displayed on the digital wallet platform Liminal and the actual transaction contents on WazirX.
While Liminal staff argued that the WazirX hack did not breach Liminal's platform, the Indian exchange subsequently claimed otherwise. Liminal previously released a report suggesting that compromised WazirX machines created the exploit.
As a result of the breach, an unidentified attacker reportedly stole at least $100 million in Shiba Inu (SHIB) and $52 million in Ether (ETH). The loss accounts for 45% of WazirX's reserves.
Magazine: Wazir X Hackers Prepared 8 Days Before Attack, Fraudsters Fake Fiat For USDT: Asia Express
