WazirX, a prominent cryptocurrency exchange, has initiated the second phase of its fiat currency withdrawal process earlier than planned. Originally scheduled to start on September 9, the exchange decided to begin the process on September 3. This decision comes in the wake of a significant security breach that resulted in the theft of over $230 million in user assets. CEO Nishal Shetty announced the update on social media, reassuring users that the exchange is working diligently to restore access to customer funds. Currently, users have the option to withdraw up to 66% of the total INR amount deposited on the exchange, with the remaining funds expected to be accessible at a later date.
Consequences of the Security Breach
The security breach in July, which led to the loss of $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH), forced WazirX to halt its operations and undertake a restructuring process. Legal advisors have advised that customers may only recover a portion of their lost funds, with estimates ranging between 55% and 57% of the initial assets. Despite these efforts, the future remains uncertain for many affected users as the exchange navigates through the aftermath of the breach.
Hacker Activity and Investigation Updates
In a concerning turn of events, the hacker responsible for the breach has begun moving the stolen Ether using the crypto mixer Tornado Cash as of September 2. Approximately $6.5 million worth of Ether was transferred in 16 transactions on the Ethereum network through the hacker’s address, which contains over $155 million in various tokens. This development marks a significant change in the investigation, as the hacker had not utilized Tornado Cash previously. The attack on WazirX is suspected to be attributed to the North Korean hacking group Lazarus, known for laundering large sums of stolen funds and conducting sophisticated cyber operations.
WazirX’s early initiation of the fiat currency withdrawal process provides partial relief to users amid the aftermath of the security breach. However, the road ahead remains uncertain as the exchange grapples with the consequences of the hack. The ongoing investigation into the hacker’s activities sheds light on the complex nature of cybersecurity threats faced by cryptocurrency platforms.
