WazirX Restores Investor Balances After Massive Hack, But Withdrawal Timeline Remains Unclear

Nearly a month after a massive hack led to the loss of $234 million from WazirX’s Safe Multisig wallet, the Indian crypto exchange has restored investor balances.

Nearly a month after a massive hack led to the loss of $234 million from WazirX’s Safe Multisig wallet, the Indian crypto exchange has restored investor balances. However, the timeline for when users can withdraw their funds remains unclear, causing frustration and anxiety among investors.

On August 16, WazirX provided an update stating that they are focusing on resolving two main issues: defining the proper approach when dealing with the balances in the Indian Rupee (INR) and the issues with the balances in the context of cryptocurrencies. The company further stated that these solutions require legal research and is still waiting for responses from partners that will address these problems.

Earlier in the same day, WazirX released a statement that all its platform operations had been shut down for scheduled maintenance that lasted until 2 a.m. The exchange confirmed all the trades that were carried out after the withdrawal stoppage that occurred at 1 p.m. IST on July 18 when the hack happened, are now rolled back. Customers have been able to see their funds in their accounts after being in the dark for almost a month.

However, such changes have not managed to calm down the investors demanding to withdraw their funds immediately, and this is because there is no definite time frame regarding funds withdrawal. The situation worsened after the exchange initially proposed a loss-sharing model of 55/45, which faced strong opposition.

Investors Express Frustration Over Withdrawal Delays

The attack was aimed at one of the multi-signature WazirX wallets containing more than 45% of the invested funds, or $234 million. With only 55% of customer funds remaining, WazirX faces a significant challenge in returning all investor funds. Customers of WazirX have been expressing their frustration on social media platforms because they have not been able to withdraw their money.

In light of the hack, an Indian association known as the Bharat Web3 Association (BWA) has vowed to strengthen cybersecurity measures for users of cryptocurrencies.

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