WazirX Freezes $3 Million Following $230 Million Crypto Hack
By: Eva Baxter
Indian cryptocurrency exchange WazirX has initiated significant recovery efforts by freezing $3 million in USDT in response to a devastating $230 million hack that occurred in July 2024. This decisive move, confirmed in a recent update on the social media platform X, reflects the exchange's dedication to safeguarding its users' assets and reinstating trust in its operations after the security breach.
WazirX co-founder Nischal Shetty emphasized the exchange's commitment to recovering the stolen funds, ensuring that no effort is spared in maximizing recoveries under the newly implemented schemes. Over the past months, WazirX has implemented a series of measures aimed at compensating affected users. These initiatives include a strategic restructuring and plans to launch a decentralized exchange (DEX) designed to bolster user security within the platform.
The proactive recovery measures have garnered widespread support from the broader cryptocurrency community in India. Notably, CoinDCX, another leading crypto exchange in India, has expressed its willingness to assist in the recovery operations. CoinDCX co-founder Sumit Gupta mentioned that his company is prepared to deploy resources to aid affected users, contingent upon court and creditor approvals. This offer underscores the solidarity within the industry to support those affected by such significant incidents.
Adding to the recovery efforts, CoinSwitch has unveiled a $70 million recovery initiative titled "CoinSwitch Cares." This program is specially tailored to help WazirX users impacted by the breach. Through a dedicated portal, users are provided with an opportunity to estimate recoveries, deposit funds, and earn rewards. CoinSwitch co-founder Ashish Singhal reiterated that the program's objective is not only to mitigate financial losses for users but also to contribute to the growth and resilience of the Indian cryptocurrency community at large.
As WazirX progresses in its recovery mission, the team reassures its users that the rebalancing process is nearing completion, with plans to reintegrate the recovered funds into user accounts once all procedural operations are finalized. This unfolding incident highlights the vital importance of robust security measures in the crypto industry, as well as the strength of community collaboration in overcoming challenges and supporting affected platforms.
