WazirX Restores User Portfolio Balances, Withdrawals Still Remain Closed

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Sujha Sundararajan

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Sujha Sundararajan

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August 8, 2024 06:13 EDT

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WazirX, the Indian crypto exchange that fell trap to a major security breach last month, is slowly restoring the balances of all user accounts. The balances will be restored to what they were at the time of the security breach, a new update noted.

📢 Important Update:

We are actively listening to your feedback and taking decisive action to address your concerns! After careful consideration of the situation and the feedback received from numerous users, we are constrained to restore the balances of all accounts and undo… pic.twitter.com/Bmp6GqvPfr

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 8, 2024

On Thursday, WazirX announced that the decision to restore balances, comes after carefully considering numerous user feedbacks.

“We are constrained to restore the balances of all accounts and undo all trades carried out on the WazirX platform following the stoppage of withdrawals on 18 July 2024, 1 PM IST.”

WazirX, one of the leading crypto exchanges in India, suffered severe cyberattack on July 18, that drained $234 million customer funds. Soon after the security breach, the exchange halted withdrawals temporarily.

However, per the recent update, the exchange has still not resumed fund withdrawals and trading of assets.

The exchange wrote that it will carry out the restoration in the “next few days.”. “Affected users will receive an email notifying them of any affected trades,” it added.

The exchange took the breach seriously and the restoration plan aims to protect the integrity of the platform and facilitate an equitable outcome for users.

WazirX Addresses Several FAQ’s

The notice also included answers to several customers’ questions. WazirX noted that it would credit back the tax deducted at service (TDS) associated with the affected trades to users.

“Fees and referrals arising from the affected trades will similarly be reversed,” it added. However, all pending transactions will be cancelled and the portfolio will be restored to how it was on July 18.

Further, the restoration will apply to all trades and any crypto-to-INR or crypto-to-crypto transactions will be ‘undone.’

Following the heist, the WazirX hacker had apparently converted majority of the stolen funds to Ether (ETH). Reports noted that the hacker exchanged the stolen assets for 43,800 ETH, valued at approximately $149.46 million at the time.