WazirX, a cryptocurrency exchange, was hit by a $230 million cyberattack. In a significant move, the exchange said it would reverse all transactions. This action intends to restore the balances to their state before the attack.
It will also stop trading and withdrawal during restoration to protect the system and avoid similar issues.
WazirX Reverses Trades Post Major Cyberattack
WazirX put a rollback of all the trades after 1 PM IST on July 18, the day of the attack. This will effectively void all transactions done after the breach. Whether in cryptocurrency or Indian Rupees, the user portfolios will be returned to their state before the breach.
Also, the exchange will cease all trades executed from July 18 to July 21. Every user affected by the trades and the adjustments made will be sent an email notification about the specific trades made in their accounts.
Also, WazirX will compensate for all trading charges and referral bonuses obtained during the affected time. Customers will also get points for the tax incentives for such operations.
It has assured its community that these measures are essential in addressing any inequity created by unauthorized access and will assist in enhancing the users’ confidence.
In the restoration process, WazirX also stresses the need for trading and withdrawal facilities to be unavailable. This suspension prevents new transactions from being processed, which allows corrections to be made without impacting the other restoration processes.
The exchange maintains its commitment to transparency and will send updates regarding the situation further on.
WazirX, Liminal Strengthen Security After Hack
WazirX was hacked on July 18 and lost approximately $230 million of cryptocurrency from the exchange platform. The hackers attacked the multi-signature wallet of the exchange at WazirX, though multiple devices were infected.
WazirX, the Indian Cryptocurrency exchange, pointed towards the user interface flaw, but Liminal, the multi-party computation wallet provider, stated that the breach resulted from compromised WazirX devices.
Liminal’s analysis established that the attackers spoofed a transaction hash given out by WazirX’s devices that their server initially accepted as genuine. This enabled the attackers to fulfill a fraudulent transaction on the Ethereum network.
The case shows that threats in the cryptocurrency space are becoming increasingly advanced and calls for stricter measures to protect against such risks.
Both WazirX and Liminal are working closely to mitigate the risks highlighted in the attack. The exchange has promised to increase security measures and guarantee that the right level of protection will be put in place to avoid the recurrence of the breach.
During the plan’s restoration process, WazirX’s primary goal is to protect its users and optimize the affected services as soon as they are safe.
