Indian cryptocurrency exchange WazirX has announced the cancellation of all outstanding open orders on its platform as part of an effort to address discrepancies in Indian rupee (INR) and cryptocurrency balances. The exchange made the announcement via a post on X (formerly Twitter) on Wednesday, stating, “Please note that all open orders currently placed on WazirX will be canceled. Any INR and crypto assets blocked in these open orders will be added to your respective balances.”
Security Breach Leads to $230 Million Loss for WazirX
This development follows a significant security breach in July, during which hackers stole substantial digital assets from the exchange. The attack resulted in the loss of $102 million worth of Shiba Inu tokens, $52 million in Ethereum, and $11.2 million in Polygon’s MATIC, among other cryptocurrencies. The breach targeted one of WazirX’s multi-signature wallets, which was managed using services from Liminal, a digital asset custody and wallet infrastructure provider.
While it remains unclear whether the cancellation of open orders is directly linked to the July hack, WazirX has reiterated its commitment to addressing and resolving all related issues.
Challenges for WazirX and Its Native Token
WazirX, one of India’s largest and fastest-growing cryptocurrency exchanges, has faced several challenges, including a sharp decline in the value of its native token, WRX. The token has plunged by 97% from its all-time high of $5.88 in April 2021, according to CoinGecko data. However, WRX saw a modest 1.5% increase in value following a 25% drop on July 19, around the time of the security breach.
India Strengthens Crypto Forensics Training Amid Ambiguous Crypto Regulations
In response to the rising threats posed by cryptocurrency-related crimes, India has intensified its efforts to train law enforcement in crypto forensics. Last year, the country provided specialized training to 141 officers from cybercrime and police departments, focusing on darknet investigations, cryptocurrency forensics, and digital intelligence gathering.
Despite these efforts, a survey by blockchain intelligence firm TRM Labs revealed that 99% of law enforcement personnel require further training in cryptocurrency-related investigations.
India’s stance on cryptocurrency regulation has been somewhat ambiguous. The implementation of strict crypto taxes in 2022, coupled with a market downturn, initially drove Indian traders to international exchanges, negatively impacting the local industry. However, trading volumes have since shifted back to Indian exchanges following a ban on offshore entities.
As part of its G20 presidency in 2023, India prioritized achieving global consensus on crypto regulations and successfully secured agreement from all G20 members on global guidelines. However, India faced criticism for advocating global standards without first implementing its own comprehensive legislation.
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