WazirX Starts Rupee Withdrawals Following Major Hack

Hacked Indian crypto exchange WazirX is commencing Rupee withdrawals, but it is unlikely any of the exchange’s depositors will be satisfied with the unwind plan.

What’s the Scoop?

• Disastrous Hack: Just over one month ago, the WazirX exchange was hacked for $230M of customer crypto deposits – 45% of its reserves according to a June asset attestation – in an attack attributed to North Korean actors.
• Repayment Plan: Crypto withdrawals cannot be processed at this time due to the significant loss of tokens, and Indian Rupee holders can only withdraw 66% of their assets at this time. The remaining 34% of cash deposits are frozen pending legal investigation.

Bankless Take:

Holding your crypto with an exchange places the burden of custody on a third party, and key infrastructure mismanagement can result in the disastrous or total loss of crypto deposits. It’s best to treat centralized exchanges like public restrooms: get in, do your business, and get out.