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On Thursday, Indian crypto exchange WazirX announced its plan to compensate customers after the multi-million exploit it suffered last month. The exchange revealed it decided to restore the balances of all customers and undo all trades carried out before July 18 and July 21.
WazirX To Restore All Account Balances
On July 18, WazirX fell victim to a security breach that took approximately $235 million from one of the trading platforms’ multisig wallets. The crypto heist stole millions of ETH, SHIB, PEPE, MATIC, and other tokens, leaving thousands of users empty-handed.
As a result, the platform halted operations and set into motion a plan to recover the stolen funds. The bounty program designated 10% of the stolen funds, around $23 million, to those who assisted WazirX’s team in recovering the tokens from the malicious actors.
In the latest development, the Indian exchange unveiled the steps to address users’ concerns and compensate affected customers following the massive hack. Per the announcement, WazirX will restore the balances of all accounts following the halt of withdrawals on 18 July 2024, 1 PM IST.
Crypto exchange updates customers of the following steps. Source: WazirX India on X
Moreover, the trading platform is set to undo all the trades made on it between the stoppage of withdrawals and the pause of trading operations on July 21. WazirX emphasized that the “decisive action” was taken after carefully considering the situation and feedback from the affected customers.
All users will have their portfolio balances on the WazirX platform restored to what they were on 18 July 2024, 1 PM IST. This restoration will be carried out over the next few days, and affected users will receive an email notifying them of any affected trades.
The crypto exchange clarified that the restoration would only affect the trades executed after July 18 to ensure that “all users are equitably treated following the abnormality arising from the cyberattack.”
As detailed in the announcement, all ongoing and pending transactions will be automatically canceled during the restoration. Additionally, TDS associated with the ineffective trades, as well as fees and referrals coming from them, will be credited back and reversed to the affected users.
Crypto Community Criticizes Next Step
WazirX’s customers shared mixed opinions about the measure. Some users expressed their content with the restoration, calling it a “step in the right direction.” Meanwhile, others criticized the decision to undo the trades carried out after the hack.
Customers ask for full fund return. Source: Zia ul Haque on X
Some users considered that the exchange made a mistake by not pausing all operations on the day of the hack. By only stopping withdrawals, customers continued to use the platform for three days before the trading halt was announced.
As a result, these customers could be affected by the restoration. Moreover, some community members claimed the measure was “not a good steep after 3 weeks, only a correction of your mistake.”
Similarly, WazirX also faced backlash for not resuming operations yet. Users not affected by the hack consider that the inability to withdraw their funds is “creating unnecessary issues.”
The announcement stated that operations are set to remain paused while the restoration is being processed. To some, the crypto exchange is “creating a pool of unclaimed funds” by not reopening withdrawals for the unaffected funds.
Total crypto market capitalization is at $1.99 trillion in the weekly chart. Source: TOTAL on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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