The Indian cryptocurrency exchange WazirX has frozen $3 million in USDT as part of its initiatives to reclaim funds swindled in a $230 million breach that occurred in July 2024.
The exchange announced this development in an update on X dated Jan. 17, stating that this action highlights its commitment to protect user assets and restore confidence following the incident.
It declared:
“In line with the ongoing recovery efforts after the cyber intrusion, $3 million USDT has been effectively frozen. This represents a significant achievement in prioritizing user interests and recovering misappropriated assets.”
WazirX co-founder Nischal Shetty indicated that the fund retrieval underscores the organization’s “absolute dedication to recovering the stolen capital” and “exerting every effort to optimize recoveries under a structured plan.”
In the past few months, the platform has put into place numerous strategies to compensate affected users, such as restructuring actions and intentions to introduce a decentralized exchange (DEX) to improve user safety.
Shetty assured users that the recovery operation is nearing its conclusion, mentioning that the team would soon reflect the retrieved funds in user accounts once the rebalancing is completed.
Support from the Industry WazirX
Following the breach, the larger cryptocurrency sector has demonstrated solidarity with WazirX through multiple initiatives.
Recently, CoinDCX, a prominent Indian cryptocurrency exchange, conveyed its intention to acquire WazirX to assist in the recovery efforts.
CoinDCX co-founder Sumit Gupta disclosed that his firm is prepared to allocate its resources to support affected users, contingent on legal and creditor approvals.
Gupta noted:
“If the WazirX team connects with us, and contingent on court/creditor approvals, we are ready to intervene and provide assistance. We are even willing to utilize some of our own capital to help affected users recover their losses as effectively as possible.”
Conversely, CoinSwitch initiated a $70 million recovery initiative titled “CoinSwitch Cares” aimed at aiding WazirX users affected by the breach. This program allows users to assess recoveries, deposit funds, and gain rewards via a specialized portal.
The company’s co-founder Ashish Singhal stated:
“The initiative is designed not just to provide users a chance to regain losses but also to promote the growth of the Indian crypto ecosystem.”
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