The recent WazirX hack that resulted in the theft of $235 million in crypto has sparked a conversation about security within the industry. Affected users are calling for stronger security measures as they are missing out on selling opportunities during the current bull run. There has been speculation about a $200 million fund movement from Binance and WazirX wallets, leading some to suggest that the world’s largest crypto exchange may be stepping in to reimburse WazirX users. Despite this, the hacked Indian crypto exchange has temporarily halted withdrawals and is cooperating with authorities.
An on-chain investigation flagged a $200 million transfer to a wallet allegedly controlled by WazirX, leading some to speculate about a potential Binance-led bailout. One user even suggested that the funding from Binance could be for equity or token-based compensation, with others placing high odds on a reimbursement announcement. However, the hacked exchange has clarified that the fund movements are part of an asset rebalancing process, consolidating assets into secure cold wallets before final allocations.
WazirX stated that the rebalancing efforts are necessary for the security of user funds, and once complete, they will share a list of all cold wallets and the respective tokens held in them. Zettai Pte Ltd, the parent company of WazirX, filed an application with the Singapore High Court to convene a meeting of creditors to vote on a scheme of arrangement. This move is aimed at helping Scheme Creditors regain access to funds and restarting the platform, with WazirX proposing a fair and equitable resolution for all creditors.
At the time of the hack, Bitcoin was trading around the $63,000-$64,000 range, and has since surged by over 66% in the last 90 days, reaching an average price of $100,262 at press time. WazirX users have been left empty-handed during this bull run, highlighting the importance of robust security measures within the crypto industry. As discussions continue around the WazirX hack and potential reimbursement for affected users, the focus remains on improving security protocols to prevent such incidents in the future.
