tl;dr
WazirX plans to disclose 240,000 wallet addresses and balances in an affidavit filed with the High Court of Singapore as part of ongoing debt restructuring efforts following a $230 million cyberattack in July. The exchange's holding company, Zettai Pte Ltd, is overseeing the restructuring process to...
WazirX plans to disclose 240,000 wallet addresses and balances in an affidavit filed with the High Court of Singapore as part of ongoing debt restructuring efforts following a $230 million cyberattack in July. The exchange's holding company, Zettai Pte Ltd, is overseeing the restructuring process to stabilize operations and address outstanding liabilities.
The cyberattack resulted in suspicious transactions with stolen assets including Pepe, Gala Games, Tether, and Ethereum, and WazirX has paused crypto withdrawals while working to restore user access. The Singapore High Court granted WazirX a four-month moratorium for restructuring, but legal disputes with CoinSwitch over locked funds and suspicions of state-backed involvement in the breach have complicated the process.
WazirX emphasized transparency as key to rebuilding trust amid ongoing efforts to repay customers after the cyberattack. The exchange aims to rebuild trust by providing an unfiltered view of its operations, as most wallet balances have already been consolidated and the disclosure is intended to inform creditors and users ahead of any legal filings.
In anticipation of users balking at the sheer number of wallets the exchange maintained, WazirX explained how managing a large volume of wallets is standard practice for a firm serving 4.3 million users. The exchange confirmed most wallet balances have already been swept and consolidated into cold, warm, or hot wallets used for operational purposes, with the remaining balances being carefully consolidated to avoid high network fees.
The July breach resulted in multiple suspicious transactions with stolen assets including Pepe (PEPE), Gala Games (GALA), Tether (USDT), and Ethereum (ETH). The hacked assets were moved in a series of transactions through Tornado Cash, a coin mixer designed to obscure the origin of funds. WazirX paused all crypto and Indian Rupee (INR) withdrawals in the immediate aftermath of the hack, leaving many users stranded.
Although the exchange has since resumed partial INR withdrawals, crypto withdrawals remain suspended as WazirX consolidates remaining wallet balances and works toward restoring user access. Legal disputes with competitor CoinSwitch over $9.7 million in locked funds have complicated the restructuring process. Authorities suspect that state-backed actors like the North Korean Lazarus Group were involved in the WazirX breach.
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