Will WazirX’s recovery plan restore confidence in CEXs?

WazirX has plans to restore user balances after a $230M hack, reversing trades for fairness.
The hack exposed vulnerabilities in WazirX’s multisig wallet, shaking confidence in the platform.

As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent turn of events at WazirX has been quite the rollercoaster ride. The $230M hack was undoubtedly a shocking blow to the community, and it’s disheartening to see such vulnerabilities exposed in a platform we once trusted.

After a substantial cyber attack in July 2024, resulting in the theft of approximately $230 million worth of digital assets, WazirX has declared an extensive recovery initiative.

The Indian cryptocurrency platform intends to reinstate user balances and undo transactions made since it stopped withdrawals on July 18th.

WazirX’s road to recovery

On August 8th, this action was revealed with the intention of solidifying our platform and rebuilding user confidence following the unfortunate incident of a major hack. (In a more conversational tone) After the disastrous hack we experienced on August 8th, we’ve decided to take steps to strengthen our platform and regain users’ trust.

Taking to X, the platform noted,

“On the WazirX platform, every user’s account balance, as it stood on July 18, 2024, will be reinstated for them.”

They further added,

“Over the coming days, we’ll perform this restoration. Users who are impacted will get an email detailing any trades that might have been affected.”

This highlights that the exchange is focused on ensuring an equitable outcome for all users affected by the breach.

Steps taken by the team

30 am UTC.

Appreciating the efforts by the team, crypto educator and influencer platform Wise Advice noted,

“Great step by team.”

Adding to the fray was another crypto influencer, Zia ul Haque who said,

As a crypto investor, I appreciate the move made by WazirX. However, I kindly request that you expedite the process of returning the complete funds to us, ensuring it doesn’t impact other users in any way.

For more convenience to our users, we’ve made available a thorough FAQ resource on WazirX, offering in-depth details and advice about the recently announced project.

What happened so far?

To clarify for those who may not be aware, the WazirX hack led to the stealing of approximately $152 million worth of Shiba Inu (SHIB) and Ethereum (ETH), affecting nearly half, or 45%, of the exchange’s total reserves.

The breach involved a multisignature wallet and exposed vulnerabilities in WazirX’s coordination with its custody provider, Liminal.

Conflicting reports between the two parties complicated the situation.

Having gone through the unfortunate incident where my digital assets were compromised due to being stored on an exchange, I cannot stress enough the importance of taking precautions when it comes to securing one’s funds. The sense of loss and vulnerability I felt was overwhelming, and it served as a powerful reminder that no platform is entirely immune to breaches or hacks. It’s crucial for every crypto user to prioritize their security measures and consider alternatives like cold storage or hardware wallets to minimize the risks associated with storing large digital assets on exchanges.

In other words, WazirX is diligently making efforts to rectify account balances and overturn transactions, aiming to regain trust and confidence among its users.

2024-08-09 04:07

WazirX’s road to recovery

Steps taken by the team

What happened so far?

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