WazirX Restores User Balances

Indian crypto exchange WazirX has restored the account balances of investors who were affected by a massive hack in its platform a month ago.

The exchange made the announcement known after completing a scheduled maintenance that started on Aug. 15. However, the restoration will only secure investors’ assets with no further information on the withdrawal of funds. 

Scheduled maintenance is now completed. Account balances have been restored, and all trades made on the WazirX platform after the withdrawal stoppage at 1 PM IST on 18th July 2024 have been undone.

Thank you for your continued patience and support. https://t.co/4kRskf7hsu

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 15, 2024

Implication of WazirX Account Balance Restoration

In a recent tweet, WazirX revealed that its team has successfully completed a scheduled maintenance that started at  6 PM on Aug. 15 and ended at 2 AM IST on Aug. 16. The maintenance was aimed at restoring balances of investors’ accounts and undoing trades made on the platform on Jul. 18, 2024, the day of the hacking. WazirX noted that all services will be unavailable until the maintenance is completed. 

Recall that the hack on one of WazirX’s multi-sig wallets led to a massive loss of $230 million, which affected over 45% of total investor funds. The Indian crypto exchange has been taking security measures to recover lost funds and ensure safety on its platform. 

This new development will allow users to view their funds, but the withdrawal option is still unavailable. Meanwhile, WazirX is currently working to provide solutions for INR and crypto balances. According to the exchange, these solutions require legal analysis, and they are waiting for positive confirmation from the various partners. 

tribe! On top priority we’re working on two aspects:

1. Solution for INR balances
2. Solution for crypto balances

Both these solutions need legal analysis which is ongoing. At the same time we’re also waiting on some positive confirmations from the various partners who can… pic.twitter.com/vL2wCv63ON

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 16, 2024

Funds Recovery Strategies from WazirX Exchange

Following the hack attack on WazirX, its founder, Nischal Shetty, took to social media to list some funds recovery strategies the exchange plans to deploy. Top of the list is a bounty program to help WazirX freeze and recover stolen assets. Nischal mentioned that WazirX has filed a statement at the police while reaching out to over 500 exchanges to block addresses linked to the stolen funds. 

The crypto exchange is also working on a 55/45 funds distribution strategy for affected users. WazirX will allow access to 55% of users’ funds for trading or withdrawal, while 45% will be converted to USDT-equivalent tokens and held in a locked state.