WazirX Victim in ICU Sparks a New Strategy

On July 18, 2024, WazirX suffered a tremendous loss from one of its multi-signature wallets due to cybercriminals’ hacking of more than $230 million in digital assets. This event comes as a shock to many WazirX customers, who are disappointed and outraged, mainly because the compromised wallet was custodied to third-party custody provider Liminal, making everyone question their security practices.

WazirX’s breach severely shook user confidence, suspending deposits, withdrawals, and trading. The platform’s failure to maintain a 1:1 collateralization ratio between assets further eroded trust. Efforts to retrieve stolen funds and collaboration with exchanges caused delays in processing. A bounty program offering $23 million for details on the attack did not lift user confidence.

This has left several WazirX users feeling exposed and let down. They wonder how a breach of this magnitude was allowed to transpire, sparking doubt about whether or not their funds are safe on the exchange. On Reddit groups, WazirX users have been discussing whether the attack was a hack or another ‘rug-pull’ scam. 

The sense of betrayal was profoundly etched on the face of a dedicated consumer known on Twitter as @indiascrypto, who had faithfully supported WazirX from the very beginning. He claimed he stood by the crypto exchange through all the ups and downs. “Especially when they had compliance issues with Binance and the Enforcement Directorate. However, they abandoned me when I needed their support during the hacking incident. This betrayal cuts deep,” stated @indiascrypto, who has since become a leading voice raising demands for justice on behalf of disgruntled WazirX users. 

Also Read: WazirX seeks help from legal authorities 

They added that more than 750 investors had come together in a Telegram community group, seeking the release of their total deposits—those unaffected by the fund freezes and the remaining balance sitting at 55%. The group consists of a host of different individuals, from students to senior citizens, across India, capturing the broad reach that this recent cyber attack had.

Even more harrowing is the case of 64-year-old Omprakash Chaudhary, who has given up on plans to recoup his massive investment of 64 lakhs and landed in an ICU. This, in turn, has heightened the demands for WazirX to spring into action immediately to regain trust as well as offer redressal to its affected users.

👋 tribe! Here’s an update on what we’re actively working on:

» We are nearing the completion of restoring the balances for trades that happened between 18 and 21 July. This will undo all trades carried out on the WazirX platform following the stoppage of withdrawals on 18 July… pic.twitter.com/dptr6LHU5m

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 13, 2024

To regain trust, WazirX has announced it will also reverse trades of July 18-21 and is working with legal experts to facilitate withdrawals. The DEX announced that it has already attracted 344 security professionals and ethical hackers to trace the stolen funds via its Bounty Program. It is still in discussions with multiple partners trying to help mitigate the financial impact of this cyberattack. 

However, one cannot help but question if these are really just efforts to save face; is WazirX truly recovering the funds?