Breaking: WazirX To Reverse Wallet Balances Amid Legal Petitions

WazirX has announced that it will restore wallet balances and cancel all trades executed after a recent hack. This decision comes in the wake of widespread customer dissatisfaction with the exchange’s earlier plans and the filing of legal petitions against the crypto exchange and its executives.

WazirX Plans To Reverse To Pre-Withdrawal Halt State

All customers will have their wallet balances on the WazirX platform restored to the state that they were before the stoppage of withdrawals on 18 July 2024 at 1 PM IST. Also, all trades carried out on the exchange following the hack will be canceled, reported the crypto exchange on August 8.

The exchange said the decision was taken after a detailed consideration of the situation and feedback from numerous users to address the concerns. The company plans to resume operations including withdrawals and trading in the upcoming days, while optimizing outcomes for users.

WazirX co-founder Nischal Shetty said “We’re actively listening to all the feedback received from our customers. Resolving the problem one step at a time.”

It also added that the crypto exchange will maintain its integrity and facilitate an appropriate outcome for its users following the impacts of the cyberattack on WazirX on July 18, 2024. Any aspects including fees, referrals, deposits, TDS, etc. impacted will be restored to the earlier state. Moreover, affected users will be notified through email along with a consolidated list of impacted trades.

However, the crypto exchange and executives have not revealed further actions taken to recover stolen funds and when impacted users will receive their funds.

Legal Petitions Filed Against the Exchange

WazirX suffered a cyberattack on multisig crypto wallet on July 18, causing hackers to siphon off $235 million in crypto including 5.4 trillion Shiba Inu tokens.

The users were dismayed with the alternative options considered by the exchange to distribute the impact to all its users and other recovery efforts.

Earlier this week, the exchange reported that an FIR under BNS & IT Act was registered on August 5 at Special Cell through Intelligence Fusion & Strategic Operations, IFSO of Delhi Police. WazirX informed users that it is working to recover all stolen assets and bring the hackers to justice.

Recently, a petition has been filed against Zanmai Labs Private Limited, its infrastructure partner Liminal, and other associated entities in the National Company Law Tribunal (NCLT).

Meanwhile, some users are also preparing to file PIL in the High Court in New Delhi against the exchange and Nischal Shetty.

Wallet Hack Linked to Data Disparities

In the aftermath of a recent wallet breach at the Indian crypto exchange WazirX, the company has attributed the incident to discrepancies between the data displayed on the digital custody platform Liminal and the actual transaction contents on their systems.

According to the official communication from them, the exchange maintained that the hack did not originate from Liminal’s platform, despite claims by Liminal employees to the contrary. Liminal had previously released a report suggesting that compromised machines were the root cause of the exploit.