WazirX restores balances post-hack, withdrawal timeline unclear

Reported by Cointelegraph: The delay in withdrawals has impacted individual investors and raised concerns about the overall security and reliability of cryptocurrency exchanges.

Nearly a month after a massive hack rocked the WazirX exchange, resulting in the loss of $234 million of investors’ funds in the Indian crypto exchange’s Safe Multisig wallet, the platform has restored investor balances.

Despite this progress, there is still no clarity on when users will be able to withdraw their funds, leaving many frustrated and anxious.

In an update on Aug. 16, WazirX stated they are working on two main issues: finding a solution for Indian Rupee (INR) balances and resolving issues related to cryptocurrency balances.

According to the company, these solutions require ongoing legal analysis, and they are awaiting confirmation from partners who can assist in resolving these issues.

WazirX maintenance over

In an earlier post on Aug. 16, WazirX announced the successful completion of its scheduled maintenance, which began at 2 am. The maintenance followed a suspension of all operations on their platform.

The exchange confirmed that all trades made after the withdrawal stoppage at 1 pm IST on July 18, the day of the hacking, have been reversed. Following this maintenance, users are now able to see their funds in their accounts after nearly a month of uncertainty.

The lack of a clear timeline for fund withdrawals has failed to appease angry investors, who have been demanding immediate access to their funds. The situation has been worsened by the exchange’s initial proposal of a socialistic loss-sharing model of 55/45, which was met with strong opposition from investors.

Industry response

The hack on July 18 targeted one of WazirX’s multisignature wallets, which contained over 45% of total investor funds, amounting to a staggering $234 million. With only 55% of customer funds remaining, WazirX is now facing a significant challenge in returning all investor funds.

The lack of transparency and the ongoing inability to withdraw funds have led to growing dissatisfaction among WazirX users. Many investors have taken to social media to express their frustration and demand immediate action.

Meanwhile, India’s Bharat Web3 Association (BWA) stepped up its commitment to robust cybersecurity and consumer protection in the crypto space following the devastating hack on WazirX.

As WazirX struggles with its predicament, Binance’s mobile app is once again available for download in India via the Google Play Store and Apple App Store after a lengthy seven-month suspension related to regulatory adherence.