WazirX Plans 8-Hour Outage to Restore User Balances After $230M Hack

WazirX, one of India’s largest cryptocurrency exchanges, has announced a scheduled eight-hour system outage to rectify account balances and reverse unauthorized transactions following a major security breach.

📢 Scheduled Maintenance

We will be undergoing maintenance from 6 PM on 15th August to 2 AM IST on 16th August to restore balances of all accounts and undo all trades made on the WazirX platform after the stoppage of withdrawals at 1 PM IST on 18th July 2024. Please note that… pic.twitter.com/IwpaZysVhG

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 15, 2024

The maintenance is planned from 6 PM on August 15th to 2 AM IST on August 16th. During this period, all platform functionalities, including trading, deposits, and withdrawals, will be temporarily disabled.

The Security Breach

The planned outage is part of WazirX’s efforts to recover from a severe hack that occurred on July 18th, 2024, resulting in the loss of over $230 million in user funds. The cyberattack, which is one of the most significant breaches in India’s cryptocurrency sector, involved hackers exploiting a vulnerability in WazirX’s Safe Multisig wallet on the Ethereum network.

The hackers carried out the attack by transferring the stolen funds to a new address through a series of transactions. A large portion of these assets was quickly converted into ETH, complicating the situation for WazirX and its users.

WazirX’s Commitment to Security and Integrity

In response to the breach, WazirX has engaged with law enforcement agencies and blockchain security experts to trace the stolen assets and identify those responsible for the attack. Initial investigations by blockchain analytics firm Elliptic suggest that the hack might have been conducted by cybercriminals linked to North Korea, known for their advanced techniques and history of targeting cryptocurrency exchanges to fund their regime.

WazirX’s decision to restore user balances follows extensive feedback from its user base and a thorough examination of the transactions that took place during the breach, marking a critical step in its ongoing efforts to mitigate damage and restore trust in the platform.

The exchange has not yet resumed normal operations, including withdrawals and asset trading, as it continues to focus on ensuring the security and accuracy of user accounts. WazirX has indicated that it will provide continuous updates on the restoration process and outline any further measures needed to safeguard the integrity of the platform.