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As part of the ongoing recovery efforts following last year’s cyberattack, WazirX has frozen stolen assets worth $3 million, nearly six months after a cyberattack wiped out nearly $235 million from one of its wallets.
“WazirX has been successful in freezing the first tranche of assets that were stolen during the cyberattack (stolen assets), worth $3M USDT [Tether],” the company said in a statement.
WazirX parent, Zettai has been working in partnership with law enforcement agencies, forensic experts, investigating authorities as well as legal experts to trace and retrieve stolen assets.
Commenting on the development, Nischal Shetty, Founder, WazirX said, “This is just the beginning; we are fully committed to recovering the stolen funds, leaving no stone unturned to maximise recoveries under a Scheme. We appreciate our users’ patience and support as we navigate this challenging situation together.”
Stolen assets
“Efforts to recover stolen assets are fully under way and moving in the right direction - between on-chain forensic work and legal avenues against third parties complicit in the Hack and subsequent dissipation, the Company is well prepared to maximise the recovery of Stolen Assets for the benefit of Scheme Creditors under a Scheme.”, said Jason Kardachi, Managing Director and Co-Head of Global Restructuring Practice, Kroll.
Freezing assets refers to the process of restricting access to stolen cryptocurrency. This happens when investigators, exchanges, and blockchain platforms identify stolen funds and prevent them for being moved or traded further.
Zettai has submitted an application to the High Court of Singapore seeking a moratorium under Section 64 of the Insolvency, Restructuring, and Dissolution Act, 2018. This move aims to provide the company with the necessary time and flexibility to restructure its liabilities and address user concerns regarding cryptocurrency balances and recovery.
Meanwhile, this development brings some relief to WazirX users, who have recently voiced their frustration on social media over the inability to capitalise on Bitcoin’s price surge. WazirX plans to relaunch its platform in February with enhanced features to retain its user base. Additionally, in November, the company announced its early-stage plans to develop a decentralised exchange (DEX), enabling users to trade crypto assets directly with one another and minimise counterparty risks.
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