- Freezing stolen funds marks a critical step in WazirX’s ongoing asset recovery efforts.
- Legal actions and forensics aim to recover assets and ensure creditor protection.
- A planned DEX launch will enhance security by reducing counterparty trading risks.
WazirX has achieved a significant milestone in its recovery process following last year’s devastating cyberattack. The platform successfully froze $3 million worth of stolen USDT (Tether). This action marks a crucial step in recovering user assets and rebuilding trust after a breach that resulted in the loss of $235 million from one of its wallets. Besides providing hope for affected users, the company’s ongoing recovery initiatives reflect its commitment to transparency and justice.
Freezing Funds: A Vital Move in Asset Recovery
The freezing of stolen cryptocurrency serves as an essential strategy in halting the dissipation of funds. By collaborating with forensic experts, law enforcement agencies, and blockchain platforms, WazirX has restricted access to these stolen assets.
Consequently, this move prevents the stolen funds from being traded or transferred further, aiding recovery efforts. Moreover, it demonstrates the company’s proactive approach to addressing the cyberattack’s aftermath.
Zettai, the parent company of WazirX, has partnered with global experts to expedite asset recovery. Efforts include on-chain forensic investigations and legal actions against third parties involved in the hack. These initiatives aim to maximize recoveries and ensure that stolen assets benefit creditors under the company’s restructuring plan.
Legal and Structural Steps to Rebuild Confidence
In addition to freezing funds, Zettai has submitted a moratorium application to the High Court of Singapore under Section 64 of the Insolvency, Restructuring, and Dissolution Act, 2018. This legal maneuver seeks to provide the company with the necessary time to restructure liabilities and address user concerns effectively. Hence, the moratorium is a critical component of the recovery process, enabling the company to focus on rebuilding its platform and regaining user trust.
Future Plans to Strengthen Operations
To reassure users and enhance its offerings, WazirX plans to relaunch its platform in February with improved features. Additionally, the company is in the early stages of developing a decentralized exchange (DEX). This initiative will allow users to trade cryptocurrencies directly, minimizing counterparty risks and increasing platform reliability.
