WazirX Recovers $3M in Stolen USDT: A Major Win Against Cyber Criminals!

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Struggling cryptocurrency exchange WazirX, based in India, scored a significant win in its battle against cyber thieves. As reported by CNBC on Friday, the platform has held approximately $3 million worth of USDT funds that were stolen.

As a researcher, I am proud to announce that we have achieved a significant milestone – our first successful recovery attempt since last year’s devastating cyberattack. This platform, which has been navigating turbulent restructuring processes, is determined to seek justice for its affected users and secure a stable future in the volatile world of cryptocurrency.

WazirX Poses a Unified Front Against Hackers

The initial return of 3 million USD Tether marks the beginning of what WazirX anticipates as a sequence of fruitful attempts to retrieve stolen funds.

Overcoming the challenge of retrieving misappropriated funds is not an easy task for our trading platform. Experts in market analysis attribute WazirX’s success to their unrelenting partnership with law enforcement, forensic investigators, and legal bodies.

In a declared remark, Nischal Shetty, the founder of WazirX, underscored their dedication to tracking down and recovering misappropriated funds.

He also mentioned that the trading platform is currently investigating the best methods to aid its users, and Jason Kardachi, who serves as Managing Director and Co-Head of Global Restructuring Practice at Kroll, shared this view.

I emphasized the unique strategy of the platform, which combines on-blockchain investigations with lawful action against culpable third parties.

Additionally, the platform’s reorganization and revival strategies aren’t just focused on compensating affected users. They also strive to strengthen security protocols to ward off future cyber attacks. This progress further emphasizes the significance of global collaboration in fighting cyber threats.

The Cyberattack: A Blow to Crypto Security

The event can be traced back to last July, as WazirX acknowledged a security breach in one of their wallets in a blog post, leading to financial losses surpassing $230 million.

Significantly, it’s been reported that the advanced cyber-assault has been linked to hacking groups based in North Korea by experts from the United States, South Korea, and Japan.

The wallet that had been compromised utilized the digital asset safekeeping structure provided by Liminal. It was shielded by numerous security measures, such as having six different individuals who could authorize transactions, as well as only allowing specific destinations for transfers.

Nonetheless, the hackers exploited a significant discrepancy, as the information displayed on Liminal’s platform differed from the genuine transaction details.

Due to this occurrence, malicious individuals were able to exploit the system and take over the digital wallet. According to Coinspeaker’s report, WazirX terminated their collaboration with Liminal Custody following the event.

As a crypto investor, I’m glad to share that in related news, I, along with many others, have been impacted by the situation at WazirX, a fellow Indian crypto exchange. However, there’s some positive development: CoinSwitch, a prominent player in our community, has stepped forward to help. They’ve announced their “CoinSwitch Cares” recovery program, which includes setting aside an impressive $69.9 million fund to aid users like us in recovering our losses. This shows the resilience and camaraderie within our crypto investing community.

The software will provide incentives like deposit bonuses, revenue-sharing advantages, and referral perks for a period of two years.

While the purpose of this platform appears to be enticing users to change, it has garnered criticism because it seems less about fair payment and more about promotional strategies.

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2025-01-17 22:03