WazirX restores balances for users following the famous hack. However, uncertainties persist around withdrawal, raising concerns from individual investors over the overall security and reliability of digital asset exchanges like WazirX.
Less than one month after a massive cyber theft saw the WazirX exchange lose $234 million of investors' funds, the Indian crypto platform has restored several investors' balances. Despite this development, there has been no clarity on when users can withdraw their funds – a development that has thrown anxiety and frustration into the air among its colossal user base.
WazirX Updates Users on Recent Operations
In its August 16 update, WazirX announced that they have completed scheduled maintenance, which began at 2 am on the same day. The said operation followed a suspension of all activities on the exchange.
Meanwhile, WazirX added that it had reversed all trades made at 1 PM IST on July 18, the fateful day of the hacking. This maintenance activity meant that users could now see their funds in their online wallet, after nearly one month of uncertainty.
The update, however, named two issues the exchange was experiencing on resolving issues connected to crypto balances and finding a solution for Indian Rupee (INR). The company added that it was subjecting these issues to legal analysis, as it anticipates ratification from partners who can support it in resolving the hitches.
The Crypto Industry’s Response to WazirX’s Plights
Uncertainty around the date for fund withdrawal has failed to appease angry investors, who have severally demanded instant access to their funds.
The July 18 cyber-theft had targeted one of WazirX's multi-signature wallets, which held over 45% of the total investments on the exchange. The successful hack left WazirX short of a massive $234 million worth of crypto.
With only 55% of its assets left, WazirX had suggested that investors share in its burden by accepting to trade only 55% of their BTC holdings post-hack on the Indian exchange. Meanwhile, the remaining 45% would be converted into USDT stablecoin or other tokens, which WazirX would lock indefinitely.
WazirX floated its 55/45 suggestion through a poll it sent to its investor base, suggesting the idea to all users, regardless of whether their funds were stolen. Results from the votes showed that investors significantly opposed the idea while venting their grievances on social media.
The public outcry from WazirX users on social media has gone beyond raising pertinent questions about the security of crypto exchanges to inspire improved security measures from concerned parties. The Bharat Web3 Association (BWA) has reportedly stepped up its commitment to boost its cybersecurity features and protect users in the virtual asset world after WazirX's unfortunate incident.
Final Insights
WazirX restores the balances of users targeted in last month's hack. However, all investors' funds remain frozen with no clarity around a future withdrawal date. Meanwhile, crypto institutions like India's Bharat Web3 Association (BWA) are beefing up their security against potential threats in the wake of WazirX's mishap.