- Restoring all user portfolio balances is to take place in a few days, stated WazirX.
- All trades from July 18 to July 21 will be nullified and considered “ineffective.”
- Proposed socialized loss strategy and controversial snapshot date received intense backlash and scrutiny.
Panic and fury continue to peak among the Indian crypto community as the crypto exchange WazirX struggles to devise a clear, less controversial recovery plan after the $230 million hack. Following the backlash received from users’ feedback, WazirX plans to reverse trades and restore balances of all user portfolios on its platform.
On the official blog post, WazirX stated:
“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 all trades carried out on the WazirX platform following the stoppage of withdrawals on 18 July 2024, 1 PM IST.”
WazirX emphasized that this decision is primarily to ensure an “equitable outcome for users following the abnormality arising from the cyberattack” on July 18. Notably, the exchange announced restoring user portfolio balances within the next few days.
What Happens To WazirX Users’ Portfolios After This?
The cyber breach affected WazirX’s Safe MultiSig wallet, sweeping out $230 million worth of crypto — 45% of the exchange’s assets. Nearly, 5.43 trillion SHIB ($102 million), 15,298 ETH ($52.5 million) and other altcoins were on the list of stolen assets. Till date, the hack is attributed to issues between WazirX’s and its digital custody partner Liminal’s data. Indian users, dissatisfied by the previously proposed “unfair” recovery plan, continue to be in further distress with no solid remedy in sight. What is the current status of WazirX exchange and how will the restoration affect users?
Currently, all trades and withdrawals remain halted and unprocessed due to the the impending restoration process. Trades that were executed following July 18, 1PM IST (7:30 UTC) will considered ineffective and reversed. The same applies to the fees and referrals associated with those trades.
Also, the blog highlighted the impact of this restoration process over users’ INR balances. While restoring, INR balances of users will also be affected. Regarding changes to India’s crypto-related tax regime, TDS of these crypto trades will be re-credited to affected users.
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