On August 3, the Indian crypto exchange WazirX faced severe backlash after announcing its plan to make users shoulder the burden of its $230 million exploit.
The latest cryptocurrency news is that WazirX is reversing the clock on its July hack. In a surprising turn of events, the platform is aiming to restore user accounts to their pre-hack state.
On August 8, WazirX announced that it would reverse all trades made after the suspension of withdrawals on July 18. The platform assured users that their portfolio balances would be reset to their state as of July 18, 2024, with the recovery process taking place over the coming days. Affected users will receive an email notification regarding the impacted trades.
WazirX has explained that its decision to restore account balances and reverse certain trades aims to ensure fairness for users affected by the hack. To achieve this, the exchange will nullify all trades between July 18 and July 21. This step guarantees equal treatment for all users.
All trades executed after 7:30 AM UTC on July 18 will be rendered void, and user portfolios will be returned to their state before this time. WazirX has also confirmed that any fees or referral benefits arising from this restoration will be reversed accordingly.
WazirX stated that fiat or crypto deposits made after July 18 would be addressed in a future update.
The heart of the dispute lies in a discrepancy between the data displayed on Liminal, WazirX’s digital custody platform, and the actual transactions occurring on the exchange.
While Liminal maintains its platform was untouched, WazirX contends otherwise. Liminal’s subsequent report pointed the finger at compromised WazirX machines as the likely culprit.
This digital heist resulted in the loss of at least $100 million worth of Shiba Inu and $52 million in Ether, a staggering 45% of WazirX’s total reserves.
