WazirX, a prominent Indian cryptocurrency exchange, has informed its users that they could face significant losses following a major security breach in July 2024 that resulted in the theft of $234 million.
The platform is currently undergoing a restructuring process and has sought time from Singapore’s high court to devise a swift recovery plan to assist affected users.
The cyberattack, which was initially exposed by the Cyvers system on July 18, 2024, saw the hacker siphon off approximately 2,600 ETH, worth around $6.5 million, to Tornado Cash—a service often used to obscure the origins of illicit cryptocurrency transactions.
🚨ALERT🚨The @WazirXIndia hacker has begun transferring stolen funds to @TornadoCash at https://t.co/bXF5gBKvxj
The incident, which was revealed by the @Cyvers_ system on July 18, 2024, resulted in a $235M loss.
So far, the attacker has moved 2,600 $ETH $6.5M to Tornado Cash!… https://t.co/egLcmhaYYb pic.twitter.com/jIlx9RND2y
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 2, 2024
Customers May Just Recover About 57% Of Their Original Assets
In light of the attack, WazirX’s restructuring team has warned that customers may only recover between 55% and 57% of their original holdings. To ensure fairness, the exchange plans to distribute the remaining tokens among users on a pro-rata basis, categorizing all users as unsecured creditors.
🚨 WazirX Restructures After $234M Hack, Users May Lose 40% of Funds
Indian crypto exchange @WazirXIndia has informed its users that they may lose over 40% of their funds following a $234 million hack in July. The exchange is currently restructuring and has requested time from… pic.twitter.com/b3nnYsVSTj
— VERITAS PROTOCOL (@veritas_web3) September 2, 2024
The recovery process is expected to take at least six months, with WazirX emphasizing that reopening cryptocurrency withdrawals will be the top priority. To address user concerns and provide further updates, the exchange has scheduled a town hall meeting via video conference on September 2, 2024.
As WazirX navigates through this challenging period, users are bracing for significant financial impacts and hoping for a swift resolution.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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