WazirX Struggles with Delays in Service Restoration Following Major Hack

• Despite secure INR holdings, WazirX’s unclear timeline for resuming withdrawals fuels user dissatisfaction.
• Bharat Web3 Association pushes for stronger crypto security protocols in India
• Despite restored balances, WazirX users still wait for withdrawal services to resume.

WazirX, one of India’s largest cryptocurrency exchanges, has faced heavy scrutiny following a major cyberattack on July 18, which resulted in a loss of about $230 million in various cryptos.

The company has admitted that this breach did not directly impact Indian Rupee (INR) holdings directly, but that has not comforted its consumers due to the postponement in resuming its withdrawal services.The exchange has been actively interacting with its client base via social media sites, encouraging patience as it looks for viable options to restart normal operations.

Challenges in Restoring Services

In response to growing concerns, WazirX has disclosed that they are in the midst of a comprehensive legal review and are awaiting collaborations with industry partners to navigate the current impasse. The primary focus remains on two critical aspects: resolving issues with INR balances and addressing concerns related to cryptocurrency holdings.

Despite efforts to reassure investors, the absence of a definitive timeline for when withdrawals will be re-enabled has exacerbated user frustrations, leading to increased public expressions of dissatisfaction.

Industry Reactions and Measures

The aftermath of the attack has affected WazirX and prompted reactions from across the cryptocurrency industry. The Bharat Web3 Association (BWA), a key industry body, has notably intensified its advocacy for stronger security protocols within the crypto space to prevent such incidents in the future.

Meanwhile, WazirX’s inability to deal with the breach’s aftermath contrasts with that of other market participants like Binance, which recently restarted operations in India after resolving regulatory issues.

Continued Uncertainty Among Investors

As the situation unfolds, WazirX users remain in limbo, with restored account balances yet no access to funds. WazirX’s initial proposal, suggesting a loss-sharing model, was met with substantial resistance from the community, underlining the challenges the exchange faces in regaining trust.

The ongoing delay and lack of transparent communication are pivotal factors contributing to the rising discontent among investors, who demand a swift and effective resolution to their grievances.