In response to a recent cyberattack that targeted Indian cryptocurrency exchange WazirX and resulted in hackers stealing over $230 million from the platform, co-founder Nischal Shetty has provided an update to reassure users and outline the steps being taken to address the situation.
Shetty confirmed that despite the cyberattack targeting digital assets, Indian rupee (INR) funds remained secure and unaffected. The team at WazirX is diligently working on restoring full functionality, including deposits, withdrawals, and trading, as part of their ongoing recovery efforts.
“We are exploring various strategies to facilitate the resumption of platform operations,” stated Shetty, acknowledging the disruption caused by the attack. He also emphasized that WazirX is actively collaborating with law enforcement to identify the perpetrators and swiftly recover the stolen funds.
The cyberattack did not directly breach WazirX’s platform but instead targeted its multi-signature wallet accessed through a third-party custody provider called Liminal. Despite this, Liminal has reassured that all WazirX-related wallets under its management remain secure, and the malicious transactions occurred outside their platform’s infrastructure.
In light of the incident, WazirX has launched a $23 million bounty program to incentivize the recovery of the stolen assets. The exchange has received numerous submissions and is currently reviewing them to expedite the recovery process.
The bounty program presents two primary initiatives for community participation. The first program, “Track & Freeze,” offers rewards of up to $10,000 in USDT for credible information leading to freezing the stolen funds. The second program, “White Hat Recovery,” offers a reward equivalent to 10% of the recovered amount, up to $23 million, to ethical hackers (white hats) who contribute to retrieving the stolen assets.
Shetty expressed optimism about potential resolutions to restore normalcy, mentioning that several ideas are under consideration to expedite the recovery process. Maintaining the security and trust of their users remains a top priority for WazirX.
At present, all deposits, withdrawals, and trading activities on WazirX are temporarily paused as the investigation and recovery efforts continue. The exchange has urged users to remain patient and assured them that updates will be provided as the situation progresses.
Despite the challenges posed by the cyberattack, WazirX remains committed to transparency and user security. With ongoing efforts to collaborate with authorities and enhance security measures, the exchange aims to resume normal operations while safeguarding user interests and funds.
Overall, WazirX is actively working towards addressing the impact of the cyberattack, restoring functionality, and ensuring the security and trust of its users during this challenging time.