Indian crypto exchange WazirX provided information about a upcoming maintenance window aimed at restoring balances on accounts and undoing some trades.
WazirX posted on X that maintenance would take place from 6:00 PM IST August 15 until 2:00 AM IST August 16. During this time, all platform services will be temporarily suspended.
The decision was made after an unsuccessful restoration plan sparked a massive outcry in the community following a hack of $230 million worth of cryptocurrency. This company wants to restore account balances for users that have been waiting almost a whole month to get their money back.
The withdrawals are still uncertain
WazirX customers can expect to have their accounts reverted by August 16 at 2:00 a.m. Indian Standard Time to the balance they had on July 18 2024. This was 1 pm IST. The exchange announced previously that all deposits and trades between July 18-21 would be reversed.
This move, according to the platform would “ensure an equitable outcome for users,” as they have been urging the exchange for months to release the funds. The exchange is yet to confirm if users will be able to withdraw their funds. While balances should appear on the affected accounts, it has not confirmed whether withdrawals would also begin.
The users will be notified via email of all trades reversed during the trading process.
The exchange, since announcing on 8 August its plans to restore user balances, has attempted to calm down the users with some minor changes. WazirX announced in a post on August 13 that it had been working with legal experts to develop a withdrawal plan.
The lack of transparency in its plan was not well received by users, who complained about the delay.
Some users mocked 8-hours of maintenance the exchange underwent at the time the article was published, claiming it as just a ploy for delaying resolution.
This is the story to date
In the July 18 WazirX attack, over 15,000 Ethereums and other tokens were drained out of one of WazirX’s multisig wallets. This attack crippled WazirX, as it affected over 45% of its customer’s funds.
WazirX’s post-hack report stated that the hack was caused by a “discordance between the displayed data” on Liminal’s interface, which is its cryptocurrency custody provider. It also added that the systems of WazirX were not affected.
The report of Liminal suggested the opposite, saying that the systems were unaffected by the attack and the wallet associated with it was made by WazirX prior to being imported onto Limina.
Edu Patel of Mudrex, the CEO, called WazirX’s recovery efforts after the hack “deeply flawed.”
The controversial recovery plan of the exchange, in which all losses were distributed equally to users and only 55% was immediately accessible by each user from their entire portfolio, added fuel to the flames. This plan was to cover all users including those that didn’t hold the assets.
The community reacted immediately, criticising this plan for being unfair.
It is still unclear if the users of WazirX will be able to recover their funds. The exchange has made recovery efforts by filing an FIR on 6 August with Delhi Police and running a bounty programme, for which it claims 344 people have entered.
ZachXBT, a blockchain investigator, has speculated that the Lazarus Group– a notorious North Korean-backed group — may have played a part in this attack. It hasn’t been confirmed.
The following post WazirX Hack Update: Exchange Plans Scheduled Maintenance to Restore User Balances may be updated as new updates develop.
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