Indian cryptocurrency exchange WazirX recently announced its decision to reverse all trades on its platform following a $235 million hack orchestrated by North Korean hackers. The hack, which took place on July 18, resulted in the exploitation of the platform’s Ethereum-based multisig cold wallet.
In an effort to restore user account balances to their pre-hack levels, WazirX will be reversing all transactions that occurred after the stoppage of withdrawals on July 18, 1 PM IST. The exchange acknowledged the impact of the cyberattack on its users and emphasized the importance of maintaining the integrity of its platform.
To execute this process, WazirX will be notifying users whose trades will be reversed in the coming days. The decision to reverse trades was made following careful consideration and feedback from affected users. The exchange aims to provide an equitable outcome for all users affected by the abnormality caused by the hack.
The hack resulted in WazirX losing 45% of its assets under management (AUM), with hackers draining significant amounts of SHIB, ETH, USDT, MATIC, and other assets. This incident marks the second-largest hack of the year, with the Japanese exchange DMM Bitcoin experiencing a similar attack earlier this year.
The exploit on WazirX’s platform was facilitated by the compromise of its multi-sig wallet, which was managed in collaboration with digital asset custodian Liminal. Hackers manipulated Liminal’s interface, tricking WazirX employees into approving a malicious transaction disguised as legitimate. This allowed the hackers to siphon millions of dollars worth of assets from the platform.
In light of this security breach, WazirX is taking proactive measures to rectify the situation and ensure the safety of its users’ funds. The exchange’s decision to reverse trades underscores its commitment to protecting its platform and maintaining trust with its user base. By prioritizing user security and transparency, WazirX aims to mitigate the impact of the hack and prevent future security incidents.