WazirX plans to restore the balances of all platform accounts following the halt of withdrawals caused by a $235 million hack in July 2024.
Points
- WazirX to reverse all trades following the $235 million hack-related withdrawal freeze.
- Portfolio balances will be restored to their state as of July 18, 2024.
- Decision aims to ensure equitable outcomes for users affected by the hack.
- The hack targeted WazirX’s multisig wallet on Ethereum.
- The reversal follows significant backlash against WazirX’s initial socialized loss strategy.
The Indian cryptocurrency exchange WazirX is planning to restore the balances of all platform accounts following the halt of withdrawals caused by a $235 million hack in July 2024. WazirX officially announced on August 8 that the platform will undo all trades carried out after the withdrawal suspension on July 18.
All users will have their portfolio balances restored to what they were on July 18, 2024. The action will be conducted over the next few days, aiming to protect the integrity of the platform and ensure equitable outcomes for users affected by the cyberattack. Affected users will receive email notifications on the impacted trades.
The decision to restore account balances and undo certain trades on WazirX aims to facilitate an equitable outcome for users following the abnormality arising from the July hack. WazirX will cancel the trades between July 18 and July 21 to ensure that all users are equitably treated. Fees and referrals arising from such restoration will similarly be reversed.
Founded in 2017, WazirX is one of India’s largest cryptocurrency exchanges. The first reports on WazirX’s $234.9 million hack surfaced on July 18, with the Web3 security firm Cyvers detecting multiple suspicious transactions involving WazirX’s Safe Multisig wallet on Ethereum.
A multisignature wallet, or multisig wallet, is a crypto wallet that requires multiple signatures to execute and process a cryptocurrency transaction. In WazirX’s case, the multisig wallet had six signatories: one from Liminal and five from WazirX.
The wallet breach occurred due to discrepancies between the data displayed on the digital custody platform Liminal and actual transaction contents on WazirX. Liminal employees argued that the hack did not breach Liminal’s platform, while WazirX claimed otherwise. The exploit resulted in the theft of at least $100 million in Shiba Inu （SHIB） and $52 million in Ether （ETH）, accounting for 45% of WazirX’s reserves.
解説
- WazirX’s decision to reverse trades and restore account balances highlights its commitment to user protection and equitable outcomes.
- The hack exposed vulnerabilities in WazirX’s multisig wallet system, underscoring the need for robust security measures.
- By addressing the discrepancies and restoring balances, WazirX aims to rebuild trust and maintain platform integrity.
- The incident serves as a reminder of the importance of stringent security protocols in the cryptocurrency exchange industry.