WazirX, a leading Indian cryptocurrency exchange, is grappling with the aftermath of a major hack that resulted in the theft of over $230 million in digital assets. Founder Nischal Shetty has provided crucial updates on the platform’s recovery efforts and the much-anticipated reinstatement of withdrawals.
The hack, which occurred on July 18th, targeted WazirX’s third-party custody provider, Liminal. While customer funds in Indian Rupees (INR) remain secure, the stolen digital assets were held by Liminal, highlighting the vulnerability of such partnerships.
Shetty offered a glimmer of hope, revealing that “some options have emerged to help with the recovery that we’re exploring.” However, the recovery process requires time, and WazirX is taking a democratic approach. They plan to conduct a poll among users to determine the preferred method for reopening the platform for withdrawals, deposits, and trading.
Despite the attack, WazirX emphasizes the security of its core platform and infrastructure. To further strengthen their defenses, they’ve launched a bounty program offering a staggering $23 million for information that leads to a resolution. This program includes a “track and freeze” bounty for identifying the stolen funds and a “white hat recovery” bounty for rewarding ethical hackers who can help reclaim lost assets.
The investigation intensifies as the attacker attempts to launder the stolen funds. Recent on-chain activity shows the transfer of $57 million worth of stolen assets to new cryptocurrency wallets, raising concerns about their potential disappearance via Tornado Cash, a service notorious for facilitating cryptocurrency laundering.
WazirX is actively collaborating with over 500 crypto exchanges to track and recover the stolen funds. Additionally, they have sought assistance from India’s Financial Intelligence Unit (FIU) to trace the movement of the lost assets.
With the investigation ongoing and recovery efforts underway, WazirX users await further updates. The upcoming user poll will shape the future of the platform, potentially offering a say in how withdrawals are reinstated and how the exchange navigates this challenging situation.
