Steps Taken by WazirX to Recover After Cyberattack

After falling victim to a cyberattack on July 18, India-based crypto exchange WazirX had to suspend all trading and withdrawal activities to assess the damage. The hack resulted in the theft of a significant amount of ERC-20 tokens, valued at over $235 million at the time. This theft created a shortfall for the exchange, leaving it unable to meet its crypto obligations to users.

To allow users access to their funds, WazirX announced a phased withdrawal plan starting on August 26. Users will be able to withdraw up to 66% of their Indian rupee (INR) balances in two stages. The first stage will permit users to withdraw half of the 66% limit between August 26 and September 8, with the remaining 50% available from September 9 to September 22.

In addition to the phased withdrawals, WazirX is pursuing a legal restructuring plan to address the deficit in crypto balances caused by the cyberattack. The exchange has opted for a Singapore Scheme of Arrangement, a legal process that will enable it to propose a restructuring plan to users, subject to approval by creditors and the Singapore High Court.

WazirX emphasized the importance of the Scheme of Arrangement for ensuring an equitable distribution of the remaining digital assets. The exchange plans to involve users in the decision-making process through polls and town halls to capture their preferences, ensuring fair outcomes for all parties involved.

By resuming INR withdrawals and implementing a thorough recovery and restructuring plan, WazirX aims to stabilize its platform and rebuild user confidence. The exchange has committed to keeping users informed throughout the process, demonstrating transparency and prioritizing fair outcomes for all involved parties.

With these steps in place, WazirX is taking proactive measures to recover from the cyberattack and ensure the security and satisfaction of its user base. Through a combination of phased withdrawals, legal restructuring, and user involvement, the exchange is on track to overcome the challenges posed by the hack and emerge stronger than before.