WazirX has initiated the second phase of its fiat currency withdrawal process ahead of schedule on Sept. 3. Initially planned to start on Sept. 9, the process has been expedited due to the urgent need to address the aftermath of a substantial security breach that resulted in the loss of over $230 million in user assets.
The exchange’s CEO, Nishal Shetty, has taken to social media to communicate the latest developments and reassure users that every effort is being made to restore access to customer funds. Currently, users are allowed to withdraw up to 66% of the total INR amount deposited, with the remaining funds set to be accessible in the future.
As WazirX undergoes a restructuring process in Singapore, it is forced to confront the repercussions of the security breach that occurred in July. The hacker exploited a vulnerability in one of the exchange’s multisig wallets, resulting in substantial losses, particularly $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH). The breach compelled the exchange to halt operations and pursue restructuring efforts to revive user trust. Unfortunately, experts suggest that customers are unlikely to recover the entirety of their lost assets, with a projected return of only 55% to 57%.
In a parallel development, the perpetrator of the breach initiated transferring the stolen Ether through crypto mixing service Tornado Cash on Sept. 2. Approximately $6.5 million worth of Ether was moved across 16 transactions on the Ethereum network. Notably, the hacker’s wallet, containing over $155 million in assorted tokens, had not previously leveraged Tornado Cash, marking a significant milestone in the ongoing investigation.
Speculations on the Responsible Party
While the identity of the hacker behind the attack on WazirX remains concealed, suspicions point towards the North Korean hacking group Lazarus. This notorious group has a history of laundering more than $1 billion in stolen funds and is known for its advanced cyber operations, making it a prime subject of international sanctions.
Overall, WazirX’s efforts to navigate the aftermath of the security breach and facilitate the fiat currency withdrawal process reflect a challenging journey riddled with uncertainties and obstacles. The exchange’s commitment to transparency and user welfare will play a pivotal role in determining its future trajectory amidst these turbulent times.