WazirX, India based cryptocurrency exchange, has frozen $3 million in funds linked to a major hack that happened in July 2024. The attack led to a loss of $230 million, making it one of the biggest crypto hacks of the year. The exchange is now focused on recovering stolen assets and restructuring its operations.
WazirX has frozen $3 million in funds. Source: XWhat Happened During the Hack?
Hackers targeted WazirX’s hot wallets, which hold asset sued for active trading. They stole 45% of the exchange’s reserves, worth $230 million. After the attack, WazirX stopped all trading and operations to prevent further damage.
Investigators found that most stolen funds were Ethereum-based ERC-20 tokens. By September 2024, analysts had tracked $50 million of these funds moving through Tornado Cash, a tool hackers use to hide stolen money. The largest transfer happened on September 25, when hackers moved $10 million worth of Ethereum.
WazirX Takes Legal Steps to Recover Stolen Assets
WazirX began legal and recovery efforts soon after the attack. In August 2024, the Singapore High Court gave the exchange’s parent company, Zettai Pte Ltd, four months to restructure its debts. This allowed WazirX to focus on recovering stolen funds.
During this time, WazirX also faced legal challenges. CoinSwitch, a rival crypto exchange, sued WazirX over $9.7 million in locked funds. This included a mix of ERC-20 tokens and other assets. Despite these issues, WazirX announced plans in October to list 240,000 wallet addresses in court to show transparency and accountability.
A recent joint statement by the United States, Japan, and South Korea blamed North Korea’s Lazarus Group for the WazirX hack. The Lazarus Group is a state-backed hacking organization. It is known for stealing crypto assets to fund North Korea’s weapons of mass destruction and missile programs.
WazirX Plans to Resume Trading by February 2025
The recovery of $3 million is a significant step, but much more needs to be done. Investigators are still tracing the movement of stolen funds and trying to prevent hackers from laundering the money. Legal cases in multiple countries have made the recovery process slow and difficult.
In November 2024, WazirX co-founder Nischal Shetty told users that the exchange plans to reopen trading by February 2025. However, this depends on the success of ongoing recovery efforts and legal proceedings.
The post WazirX Freezes $3 Million Stolen in $230 Million Hack appeared first on Coinchapter.
