Nearly a month after a massive hack on the WazirX exchange led to the loss of $234 million from investors' funds in its Safe Multisig wallet, the Indian crypto platform has restored balances to affected users. However, the timeline for when these users can withdraw their funds remains unclear, leaving many frustrated and anxious.
In an update released on August 16, WazirX stated that they are focused on two main issues: finding a resolution for Indian Rupee (INR) balances and addressing cryptocurrency balance concerns. The company noted that these solutions are subject to ongoing legal analysis and are awaiting confirmation from partners who can assist in resolving the issues.
tribe! On top priority we’re working on two aspects:
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 16, 2024
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
Earlier on the same day, WazirX announced the successful completion of scheduled maintenance that began at 2 am, following a suspension of all platform operations. The exchange confirmed that all trades made after the withdrawal stoppage at 1 pm IST on July 18, the day of the hacking incident, have been reversed. Users are now able to see their funds in their accounts after nearly a month of uncertainty.
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.
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 15, 2024
Thank you for your continued patience and support. https://t.co/4kRskf7hsu
Despite these developments, the lack of a clear withdrawal timeline has failed to satisfy angry investors, who have been demanding immediate access to their funds. The situation has been further aggravated by the exchange's initial proposal of a 55/45 socialistic loss-sharing model, which faced strong opposition from the investor community.
The July 18 hack targeted one of WazirX's multisignature wallets, which contained over 45% of total investor funds, amounting to $234 million. With only 55% of customer funds remaining, WazirX now faces significant challenges in returning all investor funds.
The ongoing lack of transparency and inability to withdraw funds have led to growing dissatisfaction among WazirX users, with many taking to social media to express their frustration and demand immediate action.
As far as I know, the INR wasn't stolen, so why does it need to be balanced? Your platform claims to have reserved funds, then why not use that to return the money? Your company should bear the lost amount and unfortunately you guys are making these type of posts every day for…
— Zia ul Haque (@ImZiaulHaque) August 16, 2024
Meanwhile, in the wake of the WazirX hack, India’s Bharat Web3 Association (BWA) has renewed its commitment to enhancing cybersecurity and consumer protection in the crypto space. In related news, Binance’s mobile app has returned to the Google Play Store and Apple App Store in India after a seven-month suspension due to regulatory compliance issues.
