WazirX Buys More Time to Plot Comeback Post-$230M Hack

• The recently hacked crypto exchange WazirX is advancing restructuring plans.
• A recent court approval has granted the exchange some breather.
• The WaziriX hacker(s) is shuffling the stolen fortune.

WazirX, once a heavyweight in the Indian cryptocurrency market, recently fell victim to a cyber attack that severely disrupted its operations, wiping out approximately 45% of its reserves. Since then, the exchange has struggled to regain stability, exploring various recovery strategies to compensate its impacted investors.

As part of these ongoing efforts, the exchange has secured court-approved temporary relief to work toward recovery.

Court Greenlights WazirX’s Restructuring Plan

A Singaporean court has approved a four-month moratorium for WazirX. According to a recent statement from the exchange, the approval was granted on September 24, 2024, following its filing last month.

Although WazirX initially sought six months, the court opted for a shorter, four-month window. This will allow the exchange time to recover from the hack’s aftermath and strategize user compensation plans. 

However, the court attached several critical conditions to the moratorium to ensure transparency. WaziriX must publicly disclose its wallet addresses through a court affidavit and financial information, such as its books of accounts, within a six-week deadline. 

The exchange must also ensure that future voting on court applications is conducted through an independent platform and scrutinized by third parties while ensuring to respond to user queries during the proceedings.

Meanwhile, the perpetrators behind the attack are actively laundering the illicit gains.

WaxirX Hacker Launders Stolen Funds

Following the July 18, 2024, cyberattack on WazirX, the hackers have reemerged, actively shuffling the stolen funds. On September 3, a wallet address linked to the perpetrators was spotlighted transferring 2,600 Ether , valued at $6.5 million at the time, to crypto mixer Tornado Cash. 

On-chain data shows that the hacker has continued to move large portions of the stolen assets since then. The latest transaction occurred on Wednesday, September 26, 2024, when the hacker executed a transfer of 3,792 ETH, valued at approximately $10 million.

About 97.3% of the stolen $230 million has been laundered to date, leaving only $6.2 million in the hacker’s wallet at the time of writing.

On the Flipside

• It is currently unclear whether WazirX users will fully recover their lost assets. In August 2024, the exchange opened 66% of INR balances for user withdrawals, while the remaining amount remains frozen.
• Some exchange users have alleged that the hack was likely an inside job.
• WazirX’s troubles may further complicate India’s already cautious stance on cryptocurrency.

Why This Matters

The four-month moratorium allows WazirX to concentrate on its recovery efforts, potentially facilitating the long-awaited relief and compensation for impacted users

Crypto exchange Binance recently distanced itself from WazirX; read this article for more details: 
Binance Fires Back at WazirX Ownership Claims Before and After Hack  

OpeAI CTO Mira Murati has stepped down from her position; learn more about the leadership shifts at the firm here:
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