WazirX has initiated the second phase of its fiat currency withdrawal process earlier than anticipated, starting on September 3 instead of the original date of September 9. This move comes in the midst of the aftermath of a major security breach where over $230 million in user assets were stolen. CEO Nishal Shetty took to social media to share this update and reassure users that the exchange is working tirelessly to restore access to customer funds. As part of the current process, users are able to withdraw up to 66% of the total Indian Rupee (INR) amount deposited on the exchange, with plans to release the remaining amount at a later date.
Consequences of Security Breach
Following a significant security breach in July, WazirX has been facing the repercussions of the hack. A hacker exploited a vulnerability in one of the exchange’s multisig wallets, leading to the loss of substantial assets, including $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH). This forced WazirX to halt its operations and embark on a restructuring journey to attempt to reimburse affected users. However, legal advice suggests that customers may only be able to recover between 55% and 57% of their lost assets, painting a bleak picture for those impacted by the breach.
Hacker Activity and Investigations
In a new development, the hacker responsible for the breach has begun to move the stolen Ether through a crypto mixer known as Tornado Cash as of September 2. Approximately $6.5 million worth of Ether was transferred in 16 transactions on the Ethereum network. This move marks a significant shift in the investigation, given that the hacker’s address, which contains over $155 million in various tokens, had not previously engaged with Tornado Cash. The attack on WazirX is suspected to be linked to the North Korean hacking group Lazarus, a notorious entity known for laundering vast sums of stolen funds. The group’s sophisticated cyber operations have made them a primary target of international sanctions.
Despite the efforts to address the liabilities stemming from the security breach and the ongoing investigation into the hacker’s movements, the road ahead remains uncertain for WazirX and its users. The exchange continues to navigate the aftermath of the breach to regain trust and provide a sense of security for its user base.
