Mumbai-based cryptocurrency exchange WazirX has announced a significant reversal of all trades that took place on its platform following a massive cyberattack on July 18, 2024. The exchange, which suffered one of the most substantial crypto heists in recent years, is now working to restore user balances to their pre-hack status.
In a detailed blog post released on Thursday, WazirX confirmed that it would begin undoing all trades conducted after it halted withdrawals at 1 p.m. on the day of the attack. The exchange reassured its users that their account balances would be reverted to what they were before the incident, aiming to safeguard the integrity of the platform and ensure fairness for all affected parties.
The Hack: A Devastating Blow
The first indications of the $234.9 million hack emerged on July 18, when Web3 security firm Cyvers detected “multiple suspicious transactions” involving WazirX’s Safe Multisig wallet on the Ethereum blockchain. The attack, which siphoned off a significant portion of the exchange’s digital assets, quickly became one of the largest in recent history.
In response, WazirX swiftly suspended all withdrawals, but trading on the platform continued for the next three days before being fully halted. This decision to allow trades despite the ongoing crisis has led to the current situation where the exchange must now reverse transactions to protect users.
Restoring Balance and Trust
As of now, trading remains suspended on WazirX as the platform explores potential solutions, including possible partnerships with other exchanges, to recover the lost funds. The company’s immediate priority is to restore user confidence by ensuring that all affected accounts are reinstated to their original state before the hack.
“All users will have their portfolio balances on the platform restored to what they were at 1 p.m. on July 18, 2024. This restoration will be carried out over the next few days, and affected users will receive an email notifying them of any affected trades,” WazirX stated in its blog post.
The decision to reverse trades is part of a broader effort by WazirX to maintain the platform’s credibility in the wake of the cyberattack. Sources within the company revealed that the two-week delay in taking action was necessary to secure the remaining wallets and ensure the platform’s overall security before proceeding with the reversal of trades.
Looking Ahead
WazirX’s handling of the crisis will likely be closely scrutinized by the global crypto community as it continues to navigate the aftermath of the attack. The exchange’s commitment to restoring user balances is a crucial step in regaining trust and stabilizing its operations.
As WazirX works to mitigate the impact of the hack, the broader crypto industry is reminded of the ever-present risks associated with digital assets. The incident underscores the importance of robust security measures and the need for platforms to be prepared for potential breaches.
WazirX’s response to the attack will set a precedent for how other exchanges might handle similar situations in the future. The industry will be watching closely as WazirX implements its recovery plan and strives to rebuild the trust of its user base.
