WazirX freezes first tranche of stolen funds worth $3M USDT

Indian crypto exchange WazirX on Friday said it has successfully frozen the first tranche of assets that were stolen in the cyberattack that resulted in the theft of $235 million worth of digital assets.

The first tranche of assets is worth about $3 million USDT.

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. Recovering these assets is the next step.

The news comes days after the US, South Korea and Japan governments released a joint statement attributing the cyberattack to North Korean hackers.

“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,” said Nischal Shetty, Founder, WazirX.

Additionally, Zettai Pte Ltd, the parent entity of Zanmai Labs which operates WazirX in India, has been working in partnership with law enforcement agencies and investigating authorities to trace and retrieve the remaining stolen assets.

In November, YourStory had exclusively reported that one individual was arrested related to the cyber heist.

Zettai has also filed an application with the High Court of Singapore for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act, 2018 to give the company breathing space as it proceeds to restructure its liabilities to address users’ concerns about cryptocurrency balances and recovery.

The news also comes as a shot in the arm for WazirX users who have in recent times taken to social media platforms to express discontent as they have not been able to cash in on the recent Bitcoin price rally.

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