On July 18, 2024, WazirX, a major cryptocurrency exchange with 1.5 crore investors, suffered a cyberattack that resulted in the theft of $230 million from its Ethereum wallet. In response, WazirX suspended trading and froze crypto withdrawals, while offering a $23 million bounty to recover the stolen assets.
The hack has significantly impacted WazirX’s ability to maintain 1:1 collateral with assets, though investors can still withdraw partial amounts from their INR wallets. To manage the situation, WazirX’s parent company, Zettai Pte, filed for a moratorium in Singapore, which was granted. The exchange has proposed a “Socialised Loss” strategy to distribute the losses among all users fairly.
Experts advise that this incident highlights the importance of due diligence for investors, including checking the track record, security protocols, and legal status of cryptocurrency platforms before investing.
Source : moneycontrol.