WazirX, one of India’s largest cryptocurrency exchanges, has announced an eight-hour scheduled system outage to restore account balances and reverse unauthorized trades following a massive security breach.
Maintenance is set to occur from 6 PM on August 15th to 2 AM IST on August 16th, during which time all platform services, including trading, deposits, and withdrawals, will be temporarily unavailable.
This restoration effort follows a severe hack on July 18th, 2024, which resulted in the loss of approximately $234 million in user funds.
Maintenance Initiated to Restore Balance
WazirX has informed its users via social media that the platform will undergo a significant maintenance period to restore the balances of all accounts to their pre-hack state.
This involves undoing all trades made on the WazirX platform after the breach was detected and withdrawals were halted at 1 PM IST on July 18th.
The platform’s decision to restore balances follows careful consideration of user feedback and a detailed review of the transactions that occurred during the breach period.
The exchange has assured users that once the restoration process is complete, their portfolios will reflect the correct holdings they had before the hack.
Additionally, the platform has committed to reversing all pending transactions and restoring the pre-hack balance for any crypto-to-INR or crypto-to-crypto trades executed during the compromised period.
In response to user concerns, WazirX has also stated that any fees, referrals, and tax deductions associated with the affected trades will be credited back to the users’ accounts.
This outage is a critical step in WazirX’s ongoing efforts to mitigate the impact of the breach and to restore confidence in its platform.
The exchange has yet to resume normal operations, including fund withdrawals and asset trading, as it continues to prioritize the security and accuracy of user accounts.
WazirX has indicated that it will continue to provide updates on the restoration process and any further actions to ensure platform integrity.
WazirX Hack: The Biggest Attack Seen in Q2
The cyberattack on July 18th, 2024, was one of the most significant security breaches in the Indian cryptocurrency sector.
Hackers exploited a vulnerability in WazirX’s Safe Multisig wallet on the Ethereum network, allowing them to drain over $234 million in various cryptocurrencies, including Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), and PEPE memecoin.
The breach was executed through a series of transactions that moved funds to a new address.
The hacker quickly converted a significant portion of the stolen assets into Ether (ETH), further complicating the financial impact on WazirX and its users.
It was revealed that the hacker’s wallet still holds around a substantial amount of ETH, valued at approximately $201.5 million.
Additionally, the hacker retains about $15 million in various other cryptocurrencies, including Dent, Chromia, Celer Network, and Frontier tokens.
In the immediate aftermath of the breach, WazirX halted all withdrawals and launched an investigation.
Initial reports from blockchain analytics firm Elliptic suggest that the hack may have been orchestrated by hackers linked to North Korea, known for their sophisticated techniques and history of targeting cryptocurrency exchanges to fund the regime.
Notably, the exchange has already engaged with law enforcement and blockchain security experts to trace the stolen assets and identify the perpetrators.
WazirX’s response has included a comprehensive review of its security measures and the implementation of additional safeguards to protect user funds.
While restoring balances and reversing trades is a positive step, WazirX faces an uphill battle in restoring user confidence and maintaining its position as a leading crypto exchange in India.
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