WazirX Freezes $3M in Stolen Funds as Recovery Efforts Advance

Months after a $230 million security breach, Indian crypto exchange WazirX has taken a major step forward by freezing $3 million in stolen USDT.

The breach, which occurred in July 2024, affected 45% of the exchange’s reserves and prompted a multi-pronged recovery and restructuring effort.

Initial investigations focused on stolen ERC-20 tokens, with analysts tracking $50 million laundered through Tornado Cash, including a significant $10 million transfer in late September.

In August, WazirX’s parent company, Zettai Pte Ltd, secured a four-month moratorium from the Singapore High Court to restructure its liabilities. During this period, rival exchange CoinSwitch filed a lawsuit over $9.7 million in frozen funds.

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As part of its recovery efforts, WazirX announced plans to disclose 240,000 wallet addresses and balances, aiming to rebuild transparency. Meanwhile, a joint statement from the U.S., Japan, and South Korea attributed the hack to North Korea’s Lazarus Group, alleging the stolen funds were used to support illicit weapons programs.

Ranking as the third-largest crypto hack of 2024, the WazirX breach underscores the growing threat of cyberattacks in the digital asset space. Despite setbacks, the exchange plans to resume trading operations by February 2025, signaling a commitment to restoring trust and stability.

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Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.