Crypto platform Wazirx has successfully frozen its first batch of stolen virtual digital assets (VDAs), valued at $3 million USDT, the company announced on Friday. This significant step follows a major security breach seven months ago, which resulted in the loss of over $230 million worth of VDAs, roughly 45% of the total crypto assets held on the platform.
The breach, which occurred in July 2024, saw one of Wazirx’s multi-signature (multisig) wallets compromised by cybercriminals, prompting the company to suspend most of its operations temporarily. Since the incident, Wazirx has been working diligently to recover the stolen assets.
“This is just the beginning, we are fully committed to recovering the stolen funds, leaving no stone unturned to maximise recoveries under a scheme,” said Nischal Shetty, founder of Wazirx. “We appreciate our users’ patience and support as we navigate this challenging situation together.”
The company’s efforts are part of a broader strategy to reclaim funds lost during the breach. The initial seizure of $3 million USDT, a stablecoin pegged to the US dollar, marks a crucial milestone in these recovery efforts. USDT is widely used in the crypto ecosystem due to its stable value, which makes it a popular choice for investors and traders alike.
Wazirx, which is owned by Zettai, a company based in Singapore, faced severe financial and operational setbacks following the breach. In August 2024, the company sought restructuring assistance from the Singapore courts after accumulating liabilities of approximately $546.5 million. At the time of the breach, Wazirx had a user base exceeding 16 million investors, and the loss has raised concerns within the global crypto community.
The breach and subsequent challenges have highlighted vulnerabilities in the crypto industry, with exchanges facing mounting pressure to enhance security measures and improve transparency. While the freezing of the stolen assets is a positive development, it remains unclear how much of the stolen funds will ultimately be recovered.
Wazirx’s proactive steps to freeze and recover the stolen assets reflect the platform’s commitment to safeguarding its users’ investments. However, the road to full recovery may be long, as the company works to address its ongoing financial and legal challenges.
As the investigation continues, Wazirx’s efforts to restore confidence in its platform will be closely watched by the wider cryptocurrency market.
