- WazirX, India’s crypto exchange, has announced plans to restore all user balances following the $230 million loss to hackers on July 18.
- The attack led to significant operational and user activity disruptions on the platform.
- WazirX claims that the breach affected the custody services provided by Liminal, although Liminal has firmly denied these allegations.
Discover how WazirX is working to restore user balances after a $230 million cyber attack disrupted the platform.
WazirX’s Strategy to Compensate Users Post- Cyber Attack
Following a severe cyber attack on July 18 that resulted in a loss of $230 million, Indian cryptocurrency exchange WazirX has committed to restoring all user balances. According to their announcement on August 8, the platform faced significant operational and transactional interruptions due to the security breach.
Details of the Cyber Attack and Its Aftermath
The attack, suspected to involve state-sponsored actors from North Korea, compromised the systems of WazirX. The exchange has attributed this breach to vulnerabilities in the services provided by their custodian provider, Liminal. However, Liminal has categorically refuted these claims, asserting that the fault lay within WazirX’s own security protocols.
Immediate Actions Taken by WazirX
In response to the incident, WazirX has invalidated all trading and transactional activities that occurred post-attack. This decision aims to ensure equitable treatment for all users impacted by the cyber attack. As per the exchange’s official statement, “Following the suspension of withdrawals on July 18, 2024, at 13:00 IST, it became imperative to reverse all transactions on WazirX’s platform and restore all account balances.”
Reimbursement Process and User Notifications
The process for balance restoration is expected to be completed in the coming days. Affected users will receive detailed email notifications pertaining to the reversed transactions. This move will encompass both cryptocurrency balances and assets held in the Indian Rupee (INR), reversing all crypto-to-INR and INR-to-crypto transactions conducted during the affected period.
Conclusion
WazirX’s proactive approach to addressing the cyber attack underscores its commitment to user security and operational integrity. By rolling back all compromised transactions and restoring user balances, the exchange aims to rebuild trust and ensure a secure trading environment for its users moving forward. Although this incident highlights the vulnerabilities in the crypto exchange ecosystem, it also sets a precedent for transparency and user-centric responses in the face of cyber threats.
