- Indian crypto exchange WazirX freezes $3M of stolen USDT, the first asset recovery since the July 2024 cyberattack.
- Hackers exploit vulnerability in WazirX’s multi-signature security to steal over $234M.
On July 17th, the Indian cryptocurrency exchange WazirX announced that it has frozen $3 million worth of stolen USDT following last year’s massive cyberattack. This marks the first successful recovery of assets since the July 2024 breach, where over $234 million (nearly ₹2000 crore) was siphoned from its Ethereum hot wallet—one of the largest crypto heists in India’s history.
Recovery Update: ~$3M USDT Frozen
As part of the ongoing recovery efforts following the cyberattack, ~$3M USDT has been successfully frozen. This marks an important milestone in safeguarding user interests and recovering stolen assets.
Why This Matters:
» Rapid Action:… pic.twitter.com/VIn7fEeOcr
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) January 17, 2025
The WazirX Hack: How Attackers Bypassed Six-Signatory Protocols
The cyberattack, which targeted WazirX’s wallet infrastructure managed by Liminal, exposed a critical vulnerability in its multi-signature security setup. Despite stringent protocols requiring transaction approvals from six signatories—five from WazirX and one from Liminal—the attackers manipulated transaction data to bypass these safeguards. Investigations revealed that the hackers exploited a mismatch between the data displayed on Liminal’s interface and the actual transaction details, enabling them to gain unauthorized control of the wallet.
The stolen funds represented nearly half of WazirX’s total assets, triggering widespread panic among investors and raising concerns over crypto security in India. The exchange’s parent company, Zettai Pte Ltd, obtained a four-month moratorium from the Singapore High Court in August 2024 to focus on restructuring liabilities and tracing stolen funds.
This incident has not only shaken investor confidence but also reignited debates around the security infrastructure of cryptocurrency platforms in India. As the government works to establish clearer crypto regulations, such breaches underscore the critical need for enhanced security measures.
However, WazirX’s breakthrough comes amid ongoing restructuring and investigations spanning multiple jurisdictions. While the recovery of $3 million is a promising start, the exchange faces a long road ahead to regain investor trust and financial stability. Still a substantial portion of the stolen funds remains unaccounted for.
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