The $230 Million Crypto Heist: WazirX Seeks Assistance from Binance
In the aftermath of a substantial $230 million crypto heist, cryptocurrency exchange WazirX is reportedly seeking assistance from Binance to aid in bailing out affected customers. The heist, which occurred on July 18, has left WazirX grappling with significant losses and scrambling to recover stolen assets.
WazirX’s Request for Help
According to sources cited by Moneycontrol, Binance holds a surplus of WazirX’s revenue and its crypto token WRX, due to an ongoing legal dispute between the two exchanges. This situation has complicated WazirX’s ability to use its own funds to address the situation. “Their legal dispute is still ongoing. There are components of WazirX’s business which are still under Binance’s control, including the revenue — the surplus of it. Even its WRX token is under their control. So they have reached out to Binance and the talks are on but at early stages,” a source revealed.
The Impact of the Heist
The security breach that compromised WazirX’s wallet, Safe Multisig, on the Ethereum network led to a massive loss of user funds. On the day of the hack, Binance reportedly held $80 million worth of WazirX tokens, which hindered WazirX’s ability to utilize its own assets for customer refunds.
Actions Taken and Legal Challenges
In addition to seeking Binance’s help, WazirX has launched a $23 million bounty program aimed at recovering the stolen assets. This program, active for three months starting from July 21, may be extended based on the recovery progress.
The situation is further complicated by the strained relationship between WazirX and Binance. Despite claims of an acquisition by Binance in November 2019, Binance CEO Changpeng Zhao stated in 2022 that Binance did not acquire WazirX. This statement followed the Enforcement Directorate freezing WazirX’s assets worth INR 64.67 crore in a money laundering investigation.
Ongoing Developments
The FBI has initiated its investigation into the nature of the cyberattack, adding another layer of complexity to the unfolding drama. As WazirX navigates this crisis, the collaboration with Binance and the bounty program represent its primary efforts to mitigate the fallout from the heist and restore customer confidence.
The $230 Million Crypto Heist: WazirX Seeks Assistance from Binance
In the aftermath of a substantial $230 million crypto heist, cryptocurrency exchange WazirX is reportedly seeking assistance from Binance to aid in bailing out affected customers. The heist, which occurred on July 18, has left WazirX grappling with significant losses and scrambling to recover stolen assets.
WazirX’s Request for Help
According to sources cited by Moneycontrol, Binance holds a surplus of WazirX’s revenue and its crypto token WRX, due to an ongoing legal dispute between the two exchanges. This situation has complicated WazirX’s ability to use its own funds to address the situation. “Their legal dispute is still ongoing. There are components of WazirX’s business which are still under Binance’s control, including the revenue — the surplus of it. Even its WRX token is under their control. So they have reached out to Binance and the talks are on but at early stages,” a source revealed.
The Impact of the Heist
The security breach that compromised WazirX’s wallet, Safe Multisig, on the Ethereum network led to a massive loss of user funds. On the day of the hack, Binance reportedly held $80 million worth of WazirX tokens, which hindered WazirX’s ability to utilize its own assets for customer refunds.
Actions Taken and Legal Challenges
In addition to seeking Binance’s help, WazirX has launched a $23 million bounty program aimed at recovering the stolen assets. This program, active for three months starting from July 21, may be extended based on the recovery progress.
The situation is further complicated by the strained relationship between WazirX and Binance. Despite claims of an acquisition by Binance in November 2019, Binance CEO Changpeng Zhao stated in 2022 that Binance did not acquire WazirX. This statement followed the Enforcement Directorate freezing WazirX’s assets worth INR 64.67 crore in a money laundering investigation.
Ongoing Developments
The FBI has initiated its investigation into the nature of the cyberattack, adding another layer of complexity to the unfolding drama. As WazirX navigates this crisis, the collaboration with Binance and the bounty program represent its primary efforts to mitigate the fallout from the heist and restore customer confidence.
In the wake of a massive $230 million crypto heist, cryptocurrency exchange WazirX is reaching out to Binance for assistance in helping affected customers recover their stolen assets. The heist, which took place on July 18, has left WazirX reeling from significant losses and struggling to regain control.
According to reports from Moneycontrol, WazirX is facing challenges in accessing its own funds and assets due to an ongoing legal dispute with Binance. The dispute has left WazirX unable to utilize its revenue surplus and its crypto token WRX, which are currently under Binance’s control. Talks between the two exchanges are said to be in the early stages as WazirX seeks support in addressing the aftermath of the heist.
The security breach that targeted WazirX’s wallet, Safe Multisig, on the Ethereum network resulted in a substantial loss of user funds. With Binance reportedly holding $80 million worth of WazirX tokens at the time of the hack, WazirX’s ability to provide refunds to affected customers has been severely impacted.
WazirX has taken proactive steps to recover the stolen assets, launching a $23 million bounty program to incentivize the return of the funds. The program, which began on July 21 and is set to run for three months, may be extended depending on the progress made in recovering the assets.
The situation is further complicated by the strained relationship between WazirX and Binance, with conflicting claims regarding the ownership and control of assets. The involvement of the FBI in investigating the cyberattack adds another layer of complexity to the unfolding saga.
As WazirX works to navigate this crisis and restore customer confidence, its collaboration with Binance and the bounty program are key components of its efforts to mitigate the fallout from the heist. The outcome of these ongoing developments will be closely watched by the cryptocurrency community.
