WazirX, an Indian cryptocurrency exchange, is making significant progress in its efforts to reverse all trades executed after the platform suspended withdrawals on July 18, 2024. The recovery plan, which began on August 8, was launched in response to widespread backlash against the exchange’s initial proposal of a “socialized loss strategy.” This strategy would have required users to share the financial impact of a $230 million theft from the platform, leading to intense criticism from the community.
The exchange has been actively working to restore balances affected by the trades that occurred between July 18 and July 21. According to the above update, WazirX is nearing the completion of this process. The plan involves undoing all trades that were carried out on the platform following the suspension of withdrawals at 1 PM IST on July 18. This move aims to rectify the impact on users who were caught in the middle of the cyberattack and subsequent suspension of withdrawals. The reversal of trades is seen as a critical step in regaining user trust and stabilizing the platform.
WazirX is also collaborating with legal experts to formulate an effective method for enabling withdrawals. The exchange has acknowledged the complexity of this process, given the legal and financial implications of the cyberattack. To address the situation, WazirX has been exploring various options to mitigate the financial impact of the attack. The exchange is currently in discussions with seven partners to identify potential solutions. These efforts reflect WazirX’s commitment to resolving the situation and ensuring that users can access their funds as soon as possible.
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In addition to trade reversals and legal consultations, WazirX has initiated a bounty program to trace the stolen funds. This program has attracted significant attention, with 344 bounty hunters, including security professionals and ethical hackers, actively participating. The exchange has emphasized the importance of these efforts in recovering the stolen assets and preventing future breaches. WazirX’s collaboration with external partners and the bounty hunters demonstrates a multifaceted approach to addressing the challenges posed by the cyberattack.
