Indian Cryptocurrency Exchange WazirX Addresses Recent Hack
Indian cryptocurrency exchange WazirX has announced an upcoming maintenance period to restore account balances and reverse certain transactions following a recent hack.
The decision to conduct maintenance comes after a failed recovery plan, which led to a massive $230 million cryptocurrency hack. WazirX aims to restore users’ account balances, which have been frozen for almost a month.
Upcoming Maintenance Details
WazirX will be conducting maintenance from 6:00 PM IST on August 15th to 2:00 AM BST on August 16th. The maintenance will focus on restoring balances on all accounts and reversing the withdrawal stop implemented on July 18, 2024. All transactions conducted on the platform after the stop will also be reversed.
By 2:00 AM IST on August 16th, users’ balances are expected to revert to their status as of 1:00 PM IST on July 18, 2024. The exchange had previously mentioned the revocation of trades and deposits made between July 18 and July 21 to ensure fair outcomes for users.
Uncertainty Surrounding Withdrawals
While account balances are set to be restored, the exchange has not confirmed whether withdrawals will resume. Users will receive an email detailing any transactions that have been reversed during the maintenance process.
Despite working with legal experts to devise a plan to support withdrawals, WazirX’s lack of transparency has led to community backlash, with users expressing frustration over delays in resolution.
Post-Hack Recovery Efforts and Controversy
Following the hack on July 18th, where more than 15,000 Ethereum and other tokens were drained from the exchange’s wallets, WazirX attributed the leak to disparities in displayed data from its hosting provider Liminal. However, conflicting reports have raised concerns about the exchange’s recovery efforts.
The exchange’s proposed recovery plan, which involves distributing losses among all users and allowing immediate access to 55% of users’ portfolios, has been heavily criticized for its perceived unfairness. The community continues to question the exchange’s actions, with doubts lingering over the transparency of its recovery process.
As WazirX navigates the aftermath of the hack, uncertainties persist regarding the security of user funds and the exchange’s ability to fully restore trust among its users.
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