Its been more than two months since the wazirx exchange hack still there is still no clarity for th remaining crypto recovery by the exchange. There have been multiple issues with the communication shared by the exchange and the exchange is not trying to be transparent with its communication to the users. This hack event happened on the 18th of July and Crypto worth $230 million (2000 Crore INR) was stolen. There have been multiple loopholes from the exchange side but despite these, the exchange has not been cooperative since the beginning. It took a couple of days for them to admit the hack incident. It also took a couple of weeks for them to share more updates about it and they did not do any sessions with the community which was another problem from the exchange side.
Now the exchange has filed for a moratorium in Singapore because the company is registered there and has been also approved by the Singapore government. The exchange has shared a lot of false data because whenever it is questioned by the community they never reply and every time they come up with something else. They have also shared different numbers and sometimes they say that 45% of crypto holdings are stolen and sometimes it is 43% but even for that they have not been able to provide adequate information. Indian users are struggling to get their remaining crypto back and now thinking about recovery is something that we cannot expect in this situation.
The exchange has announced that they will be following social loss methodology which means this loss will be distributed among all users. This hack happened only on ERC 20 wallet but even the users holding Bitcoin will be affected. It will happen because the exchange is following the social loss methodology and during this users got to know that 35% of their fiat currency holding is also seized by the enforcement directorate. There is no information shared by the exchange that when this happened and because of this communication and transparency have been a big issue with the exchange since the beginning after this tragic incident.
Cryptocurrency exchange WazirX, which suffered a massive ₹ 2,000 crore (about $234 million) cyber theft in July as millions of users still wait for their money in digital assets to be refunded, is now facing scrutiny from top government agencies in the country
This was one of the biggest exchanges in the Indian Crypto market and some Indian exchanges also had funds in the exchange. Those exchanges also did not get a satisfactory response from the wazirx exchange hence they filed legal cases. Earlier the government was not involved with this but not any more because as per the latest update, the government officials are in discussion with Wazirx to exchange far more clarity and information about it. Ideally, this should have happened before but its fine because at least now the government is involved and the exchange has to answer all the questions raised by the government authorities.
This is the time when users are more concerned about the remaining funds because the exchange is claiming that they have 55% of funds available but they have not provided any documentation which creates a situation where a possibility is that these funds might not be available. You just have raised their concern about the remaining funds and they want these funds to be returned but till now no update has been shared by the exchange.
Directly or indirectly the Wajirx exchange has mentioned that there is a higher possibility of losing the hacked funds as they have not been able to recover it. The hackers have used Tornado Cash to withdraw the crypto and they have already done it for all the crypto. I have been using this exchange for quite some time and I also had some funds there but luckily this amount was not big so its not a big concern for them still I would like to have the remaining funds that are left after the hack. I track this case closely to see how things are going and whatever is the update shared about it. Its good that now govt is involved and hope because of this users get their remaining crypto back soon.
Thank you