WazirX Cyberattack: 43% of Stolen Funds Unrecoverable
The Indian cryptocurrency exchange WazirX has announced that 43% of client funds lost in the recent cyberattack are unlikely to be recovered. Company representatives disclosed that the exchange is undergoing a restructuring process, which may take up to six months. Additionally, discussions are underway regarding potential investments and partnerships to help navigate the crisis.
It is estimated that the restructuring will require approximately 55-57% of the exchange’s current assets. In cryptocurrency terms, this suggests that this portion of the funds could be recovered and returned to users through the restructuring process. This decision has sparked outrage within the local cryptocurrency community.
The primary focus will be on establishing new revenue streams, recovering stolen assets, and expediting fund withdrawals for clients in urgent need of access to their finances. The company noted that users who agree to participate in the restructuring process could expect higher payouts.
The cyberattack on WazirX resulted in the loss of over $230 million, stored in one of the company’s multi-signature wallets. The exchange stated that the wallet was managed using digital asset storage and wallet infrastructure provided by Liminal.
Preliminary investigations revealed that the cause of the attack may have been a “discrepancy between the data displayed on the Liminal interface and the actual contents of the transaction.” The company suspects that the North Korean group Lazarus may be behind the attack.
When asked about potential legal action against Binance and Liminal, whose systems were allegedly compromised, WazirX representatives did not provide specific answers. However, they confirmed that negotiations are ongoing with a potential investor willing to provide financial assistance. It was also emphasized that capital would not be raised through the sale of company shares due to the ongoing dispute with Binance.
