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WazirX plans to disclose 240,000 wallet addresses and balances in an affidavit filed with the High Court of Singapore amid ongoing debt restructuring efforts.
The exchange has been working to repay customers after a $230 million cyberattack in July crippled WazirX’s operations and left users without access to funds.
The exchange’s holding company, Zettai Pte Ltd, is overseeing the restructuring process to stabilize operations and address outstanding liabilities.
“At WazirX, we’ve always believed that transparency is key to building and maintaining trust with our users,” the exchange wrote on Twitter Wednesday.
📢 Disclosure of 240,000+ wallet addresses pursuant to debt restructuring process
At WazirX, we’ve always believed that transparency is key to building and maintaining trust with our users. Today, we’re taking another step forward in that journey by sharing something… pic.twitter.com/JN47z21PI3
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) October 17, 2024
In anticipation of users balking at the sheer number of wallets the exchange maintained, WazirX explained in the blog post how managing a large volume of wallets is standard practice for a firm serving 4.3 million users.
The exchange confirmed most wallet balances have already been swept and consolidated into cold, warm, or hot wallets used for operational purposes, with the remaining balances being carefully consolidated to avoid high network fees.
WazirX stated how the disclosure aims to rebuild trust by providing an unfiltered view of its operations, ensuring creditors and users are informed ahead of any legal filings.
"Transparency starts with showing you everything, even if that means sharing what might seem like overwhelming data,” the exchange noted.
Fallout From the Cyber Attack
The July breach resulted in multiple suspicious transactions with stolen assets including Pepe (PEPE), Gala Games (GALA), Tether (USDT), and Ethereum (ETH).
The hacked assets were moved in a series of transactions through Tornado Cash, a coin mixer designed to obscure the origin of funds.
In the immediate aftermath of the hack, WazirX paused all crypto and Indian Rupee (INR) withdrawals, leaving many users stranded.
Although the exchange has since resumed partial INR withdrawals, crypto withdrawals remain suspended as WazirX consolidates remaining wallet balances and works toward restoring user access.
The Singapore High Court granted WazirX a four-month moratorium, during which the exchange could restructure its liabilities. However, legal disputes with competitor CoinSwitch over $9.7 million in locked funds have complicated the process.
Authorities suspect that state-backed actors like the North Korean Lazarus Group were involved in the WazirX breach. The Lazarus Group is notorious for laundering stolen assets across jurisdictions, exploiting the decentralized nature of coin mixers.
Edited by Stacy Elliott.