WazirX has announced plans to disclose 240,000 wallet addresses and balances in an affidavit submitted to the High Court of Singapore as part of its ongoing debt restructuring process. This move comes in response to a $230 million cyberattack in July that severely disrupted the exchange’s operations, leaving customers unable to access their funds.
In the aftermath of the attack, WazirX has been actively working to repay affected users and restore confidence in its platform. The restructuring process is being managed by Zettai Pte Ltd, the exchange’s holding company, which is overseeing efforts to stabilize operations and address outstanding financial obligations.
WazirX emphasized the importance of transparency during this challenging period. “At WazirX, we’ve always believed that transparency is key to building and maintaining trust with our users,” the exchange tweeted on Wednesday, signaling their commitment to openly addressing the situation.
The decision to publicly disclose wallet information marks a significant step in their efforts to regain user trust, offering a clear look into the scope of the company’s holdings and liabilities. As part of the debt restructuring, the exchange aims to provide a pathway for users to understand the status of their assets and the company’s recovery plan.
This level of disclosure could also serve as a precedent for how other exchanges handle similar crises, highlighting the growing demand for accountability in the cryptocurrency space. WazirX’s transparency efforts may play a key role in shaping the future of exchange-user relations, especially in the wake of major security breaches and operational disruptions.
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In response to potential concerns from users about the large number of wallets the exchange manages, WazirX clarified in a blog post that handling such a high volume of wallets is standard practice for a platform serving 4.3 million users.
The exchange confirmed that the majority of wallet balances have already been consolidated into cold, warm, or hot wallets used for operational purposes. The remaining balances are being carefully merged to minimize high network fees while ensuring efficient management of assets.
WazirX stated that the disclosure aims to rebuild trust by providing an unfiltered view of its operations, ensuring both creditors and users are aware ahead of any legal filings.
“Transparency starts by showing you everything, even if it means sharing data that might seem overwhelming,” the exchange mentioned.
Fallout From the Cyber Attack
The July breach led to several suspicious transactions involving stolen assets, including Pepe (PEPE), Gala Games (GALA), Tether (USDT), and Ethereum (ETH).
The hacked assets were moved through multiple transactions using Tornado Cash, a coin mixer designed to obscure the origin of funds.
In the immediate aftermath of the hack, WazirX halted all crypto and Indian Rupee (INR) withdrawals, leaving a large number of users stranded.
While the exchange has resumed partial INR withdrawals, crypto withdrawls are still suspended as WazirX continues consolidating remaining wallet balances and works towards restoring access for users.
WazirX Faces Legal Complications Amidst Restructuring, Suspected Ties to North Korean Hackers
The Singapore High Court gave WazirX a four-month moratorium, allowing the exchange time to restructure its liabilities. However, legal battles with competitor CoinSwitch over $9.7 million in locked funds have made the process more difficult.
Authorities now suspect that state-backed groups, such as the North Korean Lazarus Group, may have been behind the WazirX hack. The Lazarus Group is well-known for laundering stolen assets across different jurisdictions and taking advantage of the decentralized nature of coin mixers.
Despite the setbacks, the exchange remains focused on regaining user trust and restoring operations. However, with legal disputes still unresolved and the involvement of international actors, it remains to be seen how quickly WazirX can return to normalcy.
