WazirX freezes $3 million in USDT nearly 7 months after cyberattack

Embattled crypto platform WazirX announced that it has frozen the first tranche of stolen virtual digital assets (VDAs) worth $3 million in USDT.

 

This comes nearly seven months after an alleged security breach led to the loss of over $230 million worth of VDAs—about 45 per cent of the total crypto assets on the platform.

 

“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.

 

 

USDT, or Tether, is a type of cryptocurrency called a stablecoin. It maintains a stable value by being pegged to a fiat currency; in this case, the US dollar.

 

WazirX, whose parent company Zettai is based in Singapore, suffered a breach on its platform in July 2024. It applied for restructuring at a Singapore court on August 23. The company, facing liabilities amounting to $546.5 million, had a user base of over 16 million investors.

 

One of WazirX’s multisig, or multi-signature, wallets suffered a cyberattack, following which the company temporarily suspended most of its operations. The affected multisig wallet at the firm had six signatories: five managed by WazirX and one by Liminal Custody, a platform that services the crypto exchange’s wallets.

 

The cyberattack on the company was attributed to North Korea's notorious hacking organisation, Lazarus Group.

 

“Efforts to recover stolen assets are fully under way and moving in the right direction—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,” said Jason Kardachi, managing director and co-head of Global Restructuring Practice, Kroll.

 

A Singapore court had granted a four-month moratorium to the company in September—a period designated for restructuring its businesses without worrying about legal proceedings.