Indian cryptocurrency exchange Wazirx announced on August 23 that it will resume INR withdrawals in phases, starting on August 26, following a major cyberattack on July 18. The attack led to the theft of over $230 million, causing significant disruptions to the exchange's operations and resulting in the suspension of cryptocurrency and INR withdrawals.
The attack forced the suspension of withdrawals and trading as Wazirx's team worked to minimize the impact and devise a solution. Now, Wazirx has announced the gradual resumption of withdrawals, allowing users to access their funds in a structured manner.
Wazirx Resumes INR Withdrawals After Cyberattack
Following the cyberattack, Wazirx has opted to implement a Singapore Scheme of Arrangement to address the aftermath of the breach. This legal framework ensures a fair distribution of the remaining cryptocurrency assets among users and establishes a transparent process with user input.
The exchange underscored the significance of this approach, emphasizing the importance of legal compliance and user involvement in the distribution of assets. By involving users in the decision-making process, Wazirx aims to uphold transparency and accountability.
Wazirx clarified that the loss of a substantial balance of ERC-20 tokens has impacted its ability to fulfill cryptocurrency liabilities fully. As a result, the exchange plans to execute the Singapore Scheme of Arrangement to ensure equitable distribution of cryptocurrency assets.
This legal process involves users voting on and approving the proposed restructuring, guaranteeing a fair outcome for all parties involved. Wazirx reiterated the essential role of user feedback in this process and committed to keeping users informed through polls and town halls.
To facilitate the withdrawal process, Wazirx will lift the suspension on INR balances starting August 26, enabling users to withdraw up to 66% of their balances in two phases. The first phase, from August 26 to September 8, allows users to access half of this limit, while the second phase, from September 9 to September 22, grants access to the full 66%.
In an effort to support users during this challenging period, Wazirx has reduced withdrawal fees by 60%, lowering the cost from INR 25 to INR 10. The exchange expressed regret over the disruption caused by the cyberattack and acknowledged the challenges faced by users as a result.
The cyberattack on July 18 resulted in the theft of $234.9 million in cryptocurrency assets from Wazirx, prompting the exchange to take immediate action to secure the remaining assets. Subsequently, Wazirx suspended cryptocurrency and INR withdrawals to safeguard user funds and investigate the incident.
In response to the breach, Wazirx has focused on enhancing security measures and restoring user trust. The exchange has undertaken asset migration to new multi-signature wallets and plans to publish a list of new wallets following the completion of this process.
Liminal, a digital asset custody firm, suggested that compromised WazirX machines may have contributed to the exploit, adding complexity to the situation. With ongoing efforts to enhance security, Wazirx aims to fortify its platform against future threats and vulnerabilities.
Despite challenges posed by the cyberattack, Wazirx remains committed to providing a secure and reliable trading environment for its users. By implementing transparent distribution processes and engaging users in decision-making, Wazirx aims to uphold trust and credibility in the cryptocurrency ecosystem.
