WazirX Recovers $3M from Cyberattack: How Users Could Get Their Funds Back

Six months after a major cyberattack, WazirX announced it has frozen the first $3 million of stolen assets, bringing victims closer to recovering their funds. The incident has severely affected India’s confidence in the crypto ecosystem

Efforts To Recover Stolen Assets

WazirX noted that Zettai is collaborating with law enforcement, forensic experts, and legal authorities to trace and recover stolen assets while determining the best course of action for affected users.

“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,” shared Nischal Shetty, founder of WazirX said.

Jason Kardachi, Managing Director and Co-Head of Global Restructuring Practice at Kroll, which is handling restructuring for WazirX, noted, “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.”

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Cyberattack Linked to North Korean Hackers

The announcement follows a joint statement from the United States, South Korea, and Japan, which attributed the cyberattack to North Korean hackers. Last year, WazirX in a blog post confirmed that a cyberattack compromised one of its wallets, resulting in a loss of over $235 million. The wallet, using Liminal’s infrastructure since February 2023, was targeted by sophisticated criminals.

The statement means that recent news has provided positive news or relief to WazirX users, who had been expressing frustration on social media because they were unable to take advantage of the recent rise in Bitcoin prices.

Besides, WazirX is also in the process of reopening its platform in February with new features to retain users. In November, it noted that it is in the initial stages of developing a decentralized exchange (DEX) that allows users to trade crypto assets directly with one another, reducing counterparty risk.