WazirX has expedited its fiat currency withdrawal process ahead of schedule, allowing users to withdraw up to 66% of their total INR deposits on the exchange. This comes as a response to a major security breach that saw over $230 million in user assets being stolen. Despite CEO Nishal Shetty’s assurance that the exchange is working to restore access to customer funds, the aftermath of the breach continues to weigh heavily on the platform.
The security breach in July, which resulted in the loss of $100 million in Shiba Inu and $52 million in Ethereum, forced WazirX to suspend its operations and undergo a restructuring process in Singapore. While legal advisers have indicated that users are unlikely to recover the full amount of their lost funds, the exchange aims to return between 55% and 57% of the original assets to affected customers. However, the road ahead remains uncertain for many, as they grapple with the implications of the breach.
In a parallel development, the hacker responsible for the breach has been moving the stolen Ether through crypto mixer Tornado Cash, transferring nearly $6.5 million worth of Ether in 16 transactions on the Ethereum network. This marks a significant development in the ongoing investigation, as the hacker had not previously used Tornado Cash to move funds. The attack on WazirX is suspected to be the work of the North Korean hacking group Lazarus, known for laundering stolen funds worth over $1 billion.
As the fallout from the security breach persists, WazirX faces a challenging road ahead in restoring customer trust and ensuring the security of its platform. The expedited fiat currency withdrawal process and the ongoing investigation into the hacker’s activities are crucial steps in addressing the implications of the breach. However, the uncertainty surrounding the recovery of lost funds and the identity of the hacker underscore the challenges that lie ahead for the embattled exchange.