WazirX Freezes $3M in USDT Following $235M Hack

WazirX, an Indian cryptocurrency exchange, has successfully frozen $3 million worth of USDT as part of its ongoing recovery efforts following a $235 million cyberattack in July of last year. The exchange confirmed the development on Friday, emphasizing its commitment to safeguarding user assets and combating the long-term impacts of the breach.

The move comes as WazirX works with forensic experts and law enforcement agencies to trace and recover stolen funds. Officials said freezing the stolen assets was critical to preventing further movement by hackers and facilitating future recovery. In addition, WazirX stated that freezing the stolen funds aligns with its broader strategy to rebuild trust among its users and reinforce its security measures to prevent similar incidents in the future.

Background on the Cyberattack

The July 2024 cyberattack, which resulted in the theft of $235 million in cryptocurrency, dealt a significant blow to WazirX. Per reports, the security compromise occurred via several suspicious transactions on WazirX’s safe multi-sig wallets on the Ethereum network.

 The incident spurred the exchange's parent company, Zettai, to propose a restructuring plan. Zettai also applied for a moratorium in the Singapore High Court in August 2024, seeking to pause debt repayments while addressing the fallout from the breach.

Commitment to Recovery

WazirX's announcement underlines its focus on resolving the crisis and recovering additional assets. The exchange assured its users that it is taking every possible measure to ensure justice is served.

The exchange's ongoing collaboration with authorities has been instrumental in tracking the stolen assets. However, challenges remain, as hackers continue to exploit the decentralized and global nature of the cryptocurrency market to obfuscate their activities.

Looking Ahead

The freezing of the $3 million in USDT represents a step forward in addressing the impact of one of the largest crypto thefts in India’s history. As recovery efforts continue, WazirX plans to focus on bolstering security measures and enhancing transparency to maintain user confidence in its platform.

While additional details on the recovery timeline were not disclosed, WazirX reiterated its commitment to keeping users informed about progress. Overall, the freeze marks an important milestone but highlights the ongoing risks faced by crypto exchanges in an increasingly sophisticated threat landscape.

Disclaimer: This article is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence before making any trading or investment decisions.

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