WazirX Freezes $3M USDT in Response to Cyber Incident

WazirX, an Indian-based crypto exchange, froze $3 million USDT in stolen funds following a major cyberattack. This success comes after a difficult year for the exchange, which is also going through restructuring efforts. WazirX aims to secure justice for affected users while rebuilding its position in the crypto industry.

WazirX Fights Back Against Hackers

Freezing $3 million USDT marks just the beginning of WazirX’s recovery efforts. The exchange has worked with law enforcement, forensic experts, and legal teams to reclaim stolen funds. 

Nischal Shetty, WazirX’s Founder, emphasized the exchange's commitment to tracing stolen assets. Jason Kardachi, Managing Director at Kroll, added that WazirX is using a combination of on-chain forensics and legal action to fight back.

The Cyberattack: A Wake-Up Call for Crypto Security

The attack on WazirX began in July 2023 when hackers breached a wallet, causing a $230 million loss. Experts believe North Korean hackers were behind the breach, exploiting weaknesses in Liminal Custody's system. 

Following the attack, WazirX ended its partnership with Liminal Custody. CoinSwitch, another major Indian exchange, offered help to affected users through its "CoinSwitch Cares" program. 

The initiative set aside $69.9 million for compensation, although some critics argue the program is more of a marketing strategy than direct help. Despite the setbacks, WazirX is determined to protect users and rebuild trust.