India's largest crypto exchange, WazirX, recently froze $3 million in USDT following a major security breach. This move is part of a broader recovery process.
Massive Losses and Implications
In July 2024, WazirX experienced a loss of nearly 45% of its total assets, amounting to over $230 million. This incident ranks as the third-largest crypto hack of 2024. The hackers left WazirX with liabilities exceeding $546.5 million.
Security Vulnerability Exposed
The breach exploited a vulnerability concerning discrepancies between data shown and actual transactions. The hackers reverse-engineered the system to gain control of the wallet. Following the incident, WazirX ended its partnership with Liminal Custody.
Future Plans and Developments
In November 2024, the company cofounder assured users that recovery is underway, with plans to resume trading by February 2025. Freezing part of the stolen assets marks a significant step in regaining user trust.
WazirX’s recovery from the massive hack is actively progressing. The exchange is making strides to resume operations and restore user confidence.
