On July 18th, WazirX suffered the worst hack India has seen, and now the hacker has started purging funds. According to reports by Arkham Intelligence, a blockchain security intelligence firm, the hacker transferred 100 ETH to Tornado Cash in a series of 26 transactions.
The news occurred on the same day as a new update provided by WazirX. On the morning of September 3rd, the crypto platform initiated its users on their ongoing efforts to retrieve the funds and the commencement of Phase 2 Withdrawals, where users could withdraw up to the total 66% limit of their INR balances.
📢 INR Withdrawals Phase 2 Starts Early!
Starting today, all eligible users can now withdraw up to the full 66% limit of their INR balances.
Originally scheduled for 9th September, we’ve moved this up to provide quicker access. Thank you for your continued patience and support… pic.twitter.com/6I3BA220b2
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 3, 2024
The hacker transferred around $6.3 million to TornadoCash, a service known for obscuring the wallet source in crypto transactions, in an attempt to hide their identity. At the same time, Arkham Intelligence further informed the user that recovering the funds would be next to impossible. This has led WazirX to come under fire from its user base, with many questioning its security measures.
WazirX founder Nischal Shetty believes, “Some of the best researchers in the industry are telling that the pattern exactly matches [North Korean hackers].” The blockchain intelligence company Elliptic, which allegedly discovered a link between the hackers and North Korea, reinstates his belief.
The hack caused severe emotional and financial distress to many investors, who have now taken to social media to express their disapproval of the largest crypto exchange. In other news, Zettai Pte, the cybersecurity firm that now runs the WazirX platform, has plans to restructure. However, many users are scoffing at the crypto exchange’s mismanagement and gnashing their teeth as restructuring plans are not due to begin before six months.
While WazirX claims that 57% of the users’ funds will be available for withdrawal in INR (National currency of India), many users are raising requests for crypto withdrawals in non-erc tokens.
