Indian crypto platform WazirX freezes $3M to aid recovery from $230M hack

Indian crypto exchange WazirX has frozen $3 million in USDT as part of efforts to recover funds stolen during a $230 million hack in July 2024.

The platform confirmed this progress in a Jan. 17 update on X, saying this move showcases its determination to safeguard user funds and rebuild trust after the breach.

It stated:

“As part of the ongoing recovery efforts following the cyberattack, $3 million USDT has been successfully frozen. This marks an important milestone in safeguarding user interests and recovering stolen assets.”

WazriX co-founder Nischal Shetty said the fund recovery showed that the firm was “fully committed to recovering the stolen funds” and “leaving no stone unturned to maximize recoveries under a scheme.”

Over recent months, the platform has implemented various measures to reimburse affected users. These include restructuring initiatives and plans to launch a decentralized exchange (DEX) to enhance user security.

Shetty reassured users that the recovery process is nearing completion, adding that the team will soon reflect the recovered funds in user accounts once the rebalancing is finalized.

Industry support

Since the attack, the broader crypto industry has shown solidarity with WazirX through various initiatives.

Last month, CoinDCX, a leading Indian crypto exchange, expressed interest in acquiring WazirX to aid in the recovery process.

CoinDCX co-founder Sumit Gupta revealed that his company is ready to deploy its resources to help affected users, subject to court and creditor approvals.

Gupta stated:

“Should the WazirX team approach us, and subject to court/creditor approvals, we are willing to step in and help. We are even prepared to deploy some capital from our own funds to assist affected users and help them recover their losses as much as possible.”

On the other hand, CoinSwitch launched a $70 million recovery program called “CoinSwitch Cares” to help WazirX users impacted by the breach. The initiative enables users to estimate recoveries, deposit funds, and earn rewards through a dedicated portal.

The firm’s co-founder Ashish Singhal said:

“The program aims not only to give users an opportunity to recoup losses but also ensure growth of the Indian crypto community.”

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