The withdrawal delay has impacted individual investors and increased questions about bitcoin exchanges’ general security and reliability.
Nearly a month after a significant hack hit the WazirX exchange, leading to the loss of $234 million from investors in the Indian crypto exchange’s Safe Multisig wallet, the platform has restored investor balances.
However, despite this progress, there is still uncertainty about when users will be able to withdraw their funds, leaving many feeling frustrated and anxious.
In an update on August 16, WazirX stated that they are focusing on two main issues: resolving problems related to Indian Rupee (INR) balances and addressing issues concerning cryptocurrency balances.
The company mentioned that these solutions require ongoing legal analysis, and they are waiting for confirmation from partners who can help resolve these matters.
WazirX Maintenance Update
Earlier on August 16, WazirX announced the successful completion of its scheduled maintenance, which began at 2 a.m. This maintenance followed a suspension of all platform operations.
The exchange confirmed that all trades made after withdrawals were halted at 1 p.m. IST on July 18, the day of the hack, have been reversed.
After this maintenance, users can now see their funds in their accounts, offering some relief after nearly a month of uncertainty.
However, the absence of a clear timeline for fund withdrawals has not alleviated the anger of investors, many of whom are demanding immediate access to their funds.
The situation has been worsened by the exchange’s initial proposal of a socialistic loss-sharing model of 55/45, which investors strongly opposed.
Industry Response
The July 18 hack targeted one of WazirX’s multisignature wallets, which held over 45% of total investor funds, amounting to $234 million.
With only 55% of customer funds remaining, WazirX now faces a significant challenge in returning all investor funds.
The ongoing lack of transparency and the inability to withdraw funds have led to growing dissatisfaction among WazirX users, many of whom have voiced their frustrations on social media, demanding immediate action.
In response to the hack, India’s Bharat Web3 Association (BWA) has reaffirmed its commitment to strengthening cybersecurity and consumer protection in the crypto industry.
Meanwhile, Binance’s mobile app is once again available for download in India via the Google Play Store and Apple App Store after a seven-month suspension due to regulatory compliance issues.
