WazirX hack victims to see relief soon? On-chain data sparks hope

  cryptopolitan.com 20 h

The controversial WazirX hack that resulted in the theft of $235 million in crypto sparked discussion about security in the industry. Affected users are demanding robust measures as they are missing out on the selling opportunity amid the bull run.

A $200 million fund movement from Binance and WazirX wallets had the crypto world buzzing. Some are suggesting that the world’s biggest crypto exchange might be stepping up to reimburse WazirX users. However, the hacked Indian crypto exchange has temporarily halted withdrawals and seems to be cooperating with authorities.

Binance bailout or routine rebalancing?

An on-chain Sleuth in an X post flagged $200 million moving to a wallet allegedly controlled by WazirX. This move has sparked theories of what might be a Binance-led bailout. In this pursuit, one user speculated a potential reimbursement deal and suggested “Funding from Binance, likely for equity or token-based compensation.” Others placed 95% odds on a reimbursement announcement.

The on-chain investigator mentioned that WazirX consolidated user funds that were untouched during the hack into a wallet two months ago. The funds were shifted from the deposit addresses and hot wallets. It added that the same wallet (labeled 0x305) received $200 million in different tokens from the wallet 0xb03 which was funded by Binance wallets.

Squashing all the anticipation and brewing all the conspiracy theories, the hacked exchange posted an asset rebalancing reminder. It highlighted that the exchange is in the process of rebalancing tokens. It added that the users might notice fund movement transactions of various cold wallets.

📢 Update on Asset Rebalancing

We are currently in the process of rebalancing tokens. As part of this, you may notice fund movements between various cold wallets. The temporary consolidation of assets is a necessary step before final allocations to secure cold wallets.

Once the… pic.twitter.com/JdJPCeI3Rs

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) December 13, 2024

WazirX stated that a temporary consolidation of assets is one of the necessary steps taken before final allocations to secure cold wallets. It urged that once the rebalancing and wallet management efforts are complete, it will share a list of all cold wallets with all the respective tokens held.

Zettai Pte seeks creditor approval

Zettai Pte Ltd, the parent entity of Zanmai Labs which operates WazirX in India, filed an application with the Singapore High Court on December 6, 2024. It asked the court for leave to convene a meeting of its Creditors. The meeting will take place to present and vote on a scheme of arrangement.

It added that this crucial step is expected to help Scheme Creditors regain access to funds. Meanwhile, this move will push the firm to restart the platform. WazirX proposes that the scheme is designed to ensure a fair and equitable resolution for all Scheme Creditors.

Bitcoin was trading around the $63,000-$64,000 range when hackers left the Indian crypto exchange exploited. BTC price has surged by more than 66% in the last 90 days. Bitcoin is trading at an average price of $100,262, at press time. WazirX users have been left empty-handed amid the ongoing bull run.

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