Indian cryptocurrency exchange WazirX has canceled all open orders and returned users’ INR and crypto assets held for these trades. The decision comes amid ongoing efforts to address issues related to INR and crypto balances on the platform after last month’s security breach.
“Please note that all open orders currently placed on WazirX will be canceled,” the exchange said in a post on X. “Any INR and crypto assets blocked in these open orders will be added to your respective balances.”
WazirX fell victim to a significant security breach on July 18, resulting in a $230 million loss. The attack, suspected to be orchestrated by North Korea’s notorious Lazarus Group, led WazirX to propose a recovery plan known as a “socialized loss strategy.”
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WazirX to Reverse All Trades
Earlier in August, WazirX stated its intention to reverse all trades conducted after the platform’s withdrawal freeze on July 18, implemented in response to the cyberattack.
“This decision has not been made lightly and aims to protect the integrity of our platform and facilitate an equitable outcome for users following the abnormality arising as a result of the cyberattack which occurred on 18 July, 2024,” the platform said.
👋 tribe! Please note that all open orders currently placed on WazirX will be canceled. Any INR and crypto assets blocked in these open orders will be added to your respective balances.
This step is part of our ongoing efforts to resolve the issue surrounding INR and crypto… pic.twitter.com/G5zUyB36hN
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) August 21, 2024
WazirX has positioned itself as one of India’s leading cryptocurrency exchanges. However, the exchange has been navigating turbulent waters as of late.
Last year, WazirX faced significant regulatory hurdles, particularly involving disputes over its ownership and legal issues with Indian authorities. The primary challenge was the ongoing dispute between WazirX and Binance over the ownership of the Indian exchange.
While Binance announced in 2019 that it had acquired WazirX, this claim came under scrutiny in 2023 when Binance distanced itself from the Indian exchange.
The situation escalated when WazirX’s Mumbai office was raided by Indian officials in August 2023 as part of an investigation into allegations that the exchange had facilitated money laundering for 16 fintech companies.
The exchange’s native token, WRX, has seen a steep decline amid regulatory troubles and the recent hack. The token has plummeted 97% from its peak of $5.88 in April 2021, according to data from CoinGecko.
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CoinDCX Launches Investors Protection Fund
Earlier this month, CoinDCX launched a $6 million Crypto Investors Protection Fund (CIPF) to safeguard its users against potential security breaches after the cyber theft at WazirX.
CoinDCX’s investor protection fund aims to offer a safety net for investors, bolstering their confidence in the platform’s security. The initial corpus of $6 million for the CIPF comes directly from CoinDCX’s cash reserves.
Meanwhile, the Indian government is gearing up to release a discussion paper outlining its policy direction on digital assets before September. This comes as the country continues to grapple with rigid crypto tax rules.
As reported, Finance Minister Nirmala Sitharaman has upheld the controversial crypto tax regulations during the announcement of the fiscal year 2024-2025 budget.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
