WazirX Hack Update: Co-Founder Nischal Shetty Clarifies Misconceptions Amid $230M Loss

Losses were incurred by the company through a hack on a multi-sig wallet that was hosted by a third-party provider and massive criticisms flooded the crypto community. Many people criticized WazirX for not noticing the breach for eight days and for holding 50% of the users’ funds in a single wallet; Aditya Singh, an Indian crypto influencer, accused the exchange of negligence.

In response to such assumptions, WazirX co-founder nischal shetty to outline multiple points to provide clarity on these allegations. Shetty clarified that the breach transpired on July 18 while the attackers were accused of having infiltrated the company’s network for a week before the incident.

He stressed the relevance of the info, pointing out that if it is unreliable, it will negatively impact the progress of the recovery processes and act against the inhabitants’ benefit.

Shetty was quick to clarify the wallet that was hacked was a cold wallet with multi-sig security with two signers from two different firms and it was not a hot wallet which holds, large amounts of cryptocurrencies. He also said the users’ INR balance was intact and the WazirX platform was not hacked.

The hack happened to the multi-sig wallet without affecting other compartments that were run through a third-party custody firm, Liminal.

Another person involved in giving his perception about the incident was Mudit Gupta who is a prominent person in the crypto security domain. He said that the attackers’ conducted a dry run on non-WazirX contracts before executing the hack on the platform. “The attackers rehearsed it on other contracts,” Gupta said, “WazirX contracts were not targeted initially before the attack. ”This clarification assisted in eradicating most of the misunderstanding that was created by the hack.

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