WazirX to Restore User Balances After $230M Cyberattack

Indian cryptocurrency exchange WazirX has announced plans to restore all user account balances to their state as of July 18, 2024, at 1 PM IST, when the platform experienced a significant cyberattack that resulted in a $230 million loss.

In an announcement made on August 8, WazirX explained that this decision follows the severe cyberattack, which caused major disruptions to the exchange's operations and user activities. The attack, suspected to involve North Korean state-sponsored actors, led to the theft of over $230 million.

Responsibility for the attack remains unclear. WazirX suggested that the hackers may have compromised its custody service provider, Liminal, but Liminal has denied these claims and indicated that the breach occurred within WazirX's systems. As a result, WazirX has decided to reverse all trades and transactions that took place on the platform after the attack, which will nullify all activities from the affected period.

The restoration process will be carried out over the next few days, and users will be notified via email about the reversed trades, according to the official statement. This restoration will affect both cryptocurrency balances and Indian rupee (INR) holdings, as all crypto-to-INR and INR-to-crypto transactions during the specified timeframe will be undone.

Trading and withdrawal activities on the platform have been temporarily suspended until the restoration is complete, though no specific timeline has been provided. WazirX has also confirmed that all associated fees and referral rewards from the affected trades will be reversed, and any tax deductions related to these transactions will be credited back to users' accounts.

The company has assured users that deposits made during the affected period will be addressed in a future update.