WazirX Sets $12M for Crypto Recovery and Legal Battles Amid $230M Theft
WazirX is dedicating $12M to recover stolen crypto and cover legal expenses after a $230M cyberattack that crippled the exchange back in July.
Key points:
- Massive crypto heist: Hackers stole $230M in July, including $102M in Shiba Inu tokens.
- $12M war chest: Funds reserved to tackle legal battles and investigations.
- 30-day legal breathing room: WazirX seeks a court-ordered moratorium to stabilize operations.
- CoinSwitch litigation: Rival exchange CoinSwitch sues over locked funds.
- Global recovery effort: WazirX is contacting 500+ exchanges to trace and block stolen assets.
WazirX’s $12M Strategy to Combat the Aftermath:
WazirX, India’s largest cryptocurrency exchange, is in crisis mode following a staggering $230M cyberattack in July 2024. The breach saw hackers abscond with various digital assets, including $102M in Shiba Inu tokens, severely disrupting the platform’s operations.
In response, WazirX has earmarked $12M to cover the mounting legal costs and facilitate ongoing investigations aimed at recovering the stolen assets.
Read more: Indian Crypto Exchange WazirX Reportedly Hacked: $230M Stolen
On August 30, 2024, WazirX’s parent company, Zettai Pte Ltd, filed an affidavit in the High Court of Singapore, seeking a 30-day moratorium. This request is crucial, as it would provide the necessary time to engage with creditors and investors, preventing further legal complications that could destabilize the already beleaguered exchange.
The moratorium is seen as a vital step in maintaining the platform’s viability and allowing WazirX to negotiate potential recovery plans without the immediate pressure of legal actions.
The hack forced the exchange to suspend all withdrawals, leaving countless users stranded and sparking a loss of trust in the platform. To address this, WazirX is considering several recovery options, including in-kind crypto distributions, to compensate affected users.
Meanwhile, CoinSwitch, a rival exchange, has initiated legal proceedings against WazirX, claiming that funds have been locked on the platform due to the attack.
Read more: North Korea’s Lazarus Group Laundered $200M from 25+ Crypto Hack
In a bid to recover the stolen assets, WazirX is leaving no stone unturned. The company has contacted over 500 cryptocurrency exchanges worldwide, urging them to block any wallet addresses associated with the theft.
This broad-reaching effort is part of a larger strategy that includes collaboration with third-party blockchain forensic experts like zeroShadow to trace the stolen funds. Additionally, WazirX is in discussions with 11 potential investors—dubbed “white knights”—who could inject fresh capital into the exchange, aiding in the recovery process and restoring some level of confidence among its user base.
As the platform navigates these turbulent waters, the effectiveness of these strategies will determine WazirX’s ability to recover from one of the most significant crypto heists in recent history.
