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Hacked Indian crypto exchange WazirX is commencing Rupee withdrawals, but it is unlikely any of the exchange’s depositors will be satisfied with the unwind plan.
What’s the Scoop?
- Disastrous Hack: Just over one month ago, the WazirX exchange was hacked for $230M of customer crypto deposits – 45% of its reserves according to a June asset attestation – in an attack attributed to North Korean actors.
- Repayment Plan: Crypto withdrawals cannot be processed at this time due to the significant loss of tokens, and Indian Rupee holders can only withdraw 66% of their assets at this time. The remaining 34% of cash deposits are frozen pending legal investigation.
Bankless Take:
Holding your crypto with an exchange places the burden of custody on a third party, and key infrastructure mismanagement can result in the disastrous or total loss of crypto deposits. It’s best to treat centralized exchanges like public restrooms: get in, do your business, and get out.
📢 Important Announcement About INR Withdrawals and Crypto Next Steps
— WazirX: India Ka
The last month has been a difficult time for users of the WazirX platform due to the cyberattack on 18 July 2024 and the subsequent suspension of withdrawals and trading to mitigate impact to the platform. We… pic.twitter.com/XdAr3V3TOpBitcoin Exchange (@WazirXIndia) August 23, 2024
