Individual investors have been adversely affected by the withdrawal delay, which has also prompted apprehensions regarding the security and reliable operation of cryptocurrency exchanges.
The WazirX exchange has restored investor balances, nearly a month after a significant breach caused the loss of $234 million in investors’ funds in the Indian crypto exchange’s Safe Multisig wallet.
However, the date on which users will be able to withdraw their funds remains unclear, resulting in a significant amount of frustration and anxiety among the public.
In an update on August 16, WazirX disclosed that they are currently addressing two primary concerns: resolving cryptocurrency balance issues and identifying a solution for Indian Rupee (INR) balances.
The company is currently anticipating confirmation from partners who can help resolve these issues, as these solutions necessitate ongoing legal analysis.
WazirX previously declared the successful conclusion of its scheduled maintenance, which commenced at 2 a.m., in a post on Aug. 16. They suspended all operations on their platform prior to the maintenance.
The exchange has verified that all transactions executed subsequent to the withdrawal suspension at 1 pm IST on July 18, the day of the cyberattack, have been unwound. After nearly a month of uncertainty, users are now able to view their funds in their accounts as a result of this maintenance.
Angry investors have been clamoring for immediate access to their funds, as the absence of a clear timeline for fund withdrawals has failed to satisfy their demands. Investors strongly opposed the exchange’s initial proposal of a socialistic loss-sharing model of 55/45, which has only served to exacerbate the situation.
One of WazirX’s multisignature wallets, which contained over 45% of the total investor funds, was the target of the breach on July 18. The total quantity of investor funds was a staggering $234 million. The return of all investor funds is a significant challenge for WazirX, as only 55% of customer funds remain.
The growing dissatisfaction among WazirX users is a result of the ongoing inability to withdraw funds and the lack of transparency. Numerous investors have utilized social media platforms to articulate their dissatisfaction and request immediate action.
In the wake of the WazirX breach, the Bharat Web3 Association (BWA) in India has intensified its dedication to the protection of consumers and the implementation of rigorous cybersecurity measures in the cryptocurrency sector.
After a seven-month suspension due to regulatory compliance, Binance’s mobile application is once again accessible for installation in India via the Google Play Store and Apple App Store, as WazirX navigates its current situation.
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