Indian cryptocurrency exchange Wazirx recently made an important announcement regarding the gradual return of Indian Rupees (INR) withdrawals, following a major cyberattack on July 18 that resulted in over $230 million theft. The exchange was forced to suspend cryptocurrency and INR withdrawals in the aftermath of the attack, causing significant disruption to its operations.
Wazirx Resumes INR Withdrawals After Cyberattack
Wazirx has taken decisive steps to address the aftermath of the cyberattack, implementing a Singapore Scheme of Arrangement to ensure a fair and user-approved distribution of the remaining cryptocurrency assets. This legal process is essential for maintaining legal compliance and involving users in the asset distribution process.
Recognizing the importance of transparency and user involvement, Wazirx emphasized the democratic nature of the distribution process. The exchange clarified that the loss of a significant balance of ERC-20 tokens has impacted its ability to meet cryptocurrency liabilities fully.
As part of its restructuring efforts, WazirX plans to lift the withdrawal suspension for INR balances starting on August 26, enabling users to access up to 66% of their balances in two stages. During the first phase, users can withdraw up to 50% of their limit until September 8, with the remaining 16% available for withdrawal from September 9 to September 22.
To facilitate the withdrawal process and support users during this challenging period, Wazirx has reduced withdrawal fees by 60%, lowering the cost from INR 25 to INR 10.
Wazirx expressed regret over the disruption caused by the cyberattack and acknowledged the difficulties faced by its users. The exchange remains committed to restoring user trust and enhancing its security measures to prevent future incidents.
On July 18, WazirX faced a significant security breach, resulting in the theft of $234.9 million in cryptocurrency assets. The breach, detected by web3 security firm Cyvers, prompted immediate action by WazirX to secure remaining assets and temporarily pause withdrawals on the platform.
Following the attack, WazirX initiated an investigation and announced plans to enhance security measures and update users on the situation. The exchange’s focus on asset migration and security enhancements is crucial for rebuilding user confidence.
Liminal, a digital asset custody firm, reported that compromised WazirX machines may have contributed to the exploit, adding complexity to the incident. WazirX’s migration of assets to new multisig wallets with enhanced security features aims to prevent similar attacks in the future.
Despite the challenges posed by the cyberattack, WazirX remains dedicated to safeguarding user funds and ensuring the integrity of its platform. The exchange’s commitment to transparency and security measures is essential for maintaining user trust and credibility in the cryptocurrency industry.
