Following a major exploit, India-based centralized exchange WazirX has been struggling to restore its full operations. The exchange’s co-founder, Nischal Shetty, took to social media to share the challenges they are facing and the efforts being made to find a solution. With nearly half of its assets lost in the exploit, WazirX is actively seeking partnerships to help restart its services. Shetty mentioned reaching out to various potential partners in an attempt to find a resolution that would benefit their customers. The exchange is exploring different directions to enable platform deposits, withdrawals, and trading once again.
WazirX confirmed a security breach in one of its multisig wallets, resulting in the loss of over $230 million in user assets. The theft included a wide range of cryptocurrencies, totaling almost 50% of WazirX’s total holdings. The exchange had to temporarily pause trading due to the hack’s impact on its collateral requirements. Despite the significant losses suffered, Shetty assured users that efforts are underway to make them whole again. The exchange is also working closely with law enforcement to identify the perpetrators and recover the stolen funds.
In an attempt to incentivize the hackers to return the stolen funds, WazirX has launched a $23 million bounty program. The exchange has received numerous entries and is currently reviewing them. However, market observers remain skeptical about the likelihood of the funds being returned, especially considering the alleged affiliation of the attackers with North Korea’s Lazarus Group. WazirX insists that the hack occurred outside its product infrastructure, placing the blame on a compromised multisig wallet hosted by third-party custody provider Liminal. Despite Liminal’s claims that its infrastructure was not compromised, WazirX maintains that the exploit was a result of compromised devices owned by the exchange.
Clarifications and Challenges Ahead
Shetty clarified that the hack did not affect the firm’s fiat INR funds, but the status of INR withdrawals remains unclear. The exchange faces numerous challenges in the aftermath of the exploit, including restoring customer trust, maintaining regulatory compliance, and ensuring the security of its platform moving forward. With ongoing investigations and recovery efforts, WazirX is determined to overcome these challenges and emerge stronger than before. While the road ahead may be paved with obstacles, the exchange is committed to regaining the trust and confidence of its users.
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