WazirX has initiated phase two of its fiat currency withdrawal process ahead of schedule, starting on Sept. 3 instead of the previously announced date of Sept. 9. This development comes in the wake of a security breach that resulted in the theft of over $230 million in user assets. CEO Nishal Shetty took to social media to share the update, emphasizing the exchange’s commitment to restoring access to customer funds. Users are now able to withdraw up to 66% of the total INR amount they had deposited on the platform, with the remaining balance to be made available in the future.
The security breach in July, which saw a hacker exploit a vulnerability in one of WazirX’s multisig wallets, led to substantial losses, including $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH). As a result, the exchange temporarily suspended operations and initiated a restructuring process to address the impact on users. Legal advisors have advised that customers may only recover a portion of their lost assets, with estimates ranging from 55% to 57% of the original amount. The road ahead remains uncertain for affected users, despite ongoing efforts to mitigate the breach’s consequences.
Recent data from Arkham Intelligence revealed that the hacker responsible for the breach began transferring stolen Ether through a crypto mixer known as Tornado Cash on Sept. 2. Approximately $6.5 million worth of Ether was moved in 16 transactions on the Ethereum network. This development is significant as the hacker’s address holds over $155 million in various tokens and had not previously utilized Tornado Cash for fund transfers. The incident underscores the challenges faced in tracking and recovering stolen assets, particularly in cases involving sophisticated cybercriminals.
The attack on WazirX has been attributed to the North Korean hacking group Lazarus, which has a reputation for laundering over $1 billion in stolen funds. Lazarus is known for its advanced cyber operations and has been subject to international sanctions due to its illicit activities. The group’s involvement in the WazirX breach highlights the evolving nature of cybersecurity threats and the ongoing efforts required to safeguard digital assets against sophisticated adversaries.
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