On WazirX, the company says its commitment to transparency is unwavering. The company claims it believes in keeping its community well-informed, especially in light of recent events. Recently, Indian cryptocurrency exchange WazirX indicated that 43% of customer funds lost in a recent cyberattack are unlikely to be recovered.
WazirX confirms client funds are irrecoverable after cyberattack
In a virtual press conference, the WazirX exchange announced that it is going through a restructuring process, which can take up to six months. The team is in talks with potential investors to raise funds and explore the possibility of partnerships.
Meanwhile, WazirX co-founder Nischal Shetty discussed the restructuring plan with Kroll Managing Director Jason Cardaci and Kroll Restructuring Director George Guay.
Jason Cardachi, managing director of Kroll, said: “Around 55-57% is the net cost required to undertake this restructure. In crypto terms, this is what can be returned to users with the benefit of this restructuring.”
WazirX experienced on July 18 that it had lost more than $230 million from one of its multi-signature wallets in a cyber attack. The company said the wallet was operated using Liminal’s digital asset custody and wallet infrastructure.
After that, the restructuring will concentrate on creating new income sources, retrieving stolen assets, and delivering faster withdrawals for investors who need quick access to their funds. “This will allow for greater recoveries to be achieved for users who are willing to remain in the restructuring,” the company said.
According to the company’s preliminary investigation, the cyber attack happened due to a discrepancy between the data displayed on Liminal’s interface and the actual content of the transaction. The cyberattack is inferred to have been taken out by the Lazarus Group. An infamous cybercriminal organization allegedly supported by North Korea.
On the other hand, tension is rising on WazirX, after another major Indian crypto exchange CoinSwitch last week initiated legal action to recover about $9.7 million worth of assets stuck on WazirX’s platform.
