WazirX Announces Bounty Program to Recover Stolen Crypto

WazirX Announces Bounty Program to Recover Stolen Crypto

WazirX, an Indian cryptocurrency exchange that recently faced a hack, has announced the launch of a Bounty Program to recover stolen crypto assets worth approximately $230 million.
In a post on X on Sunday, July 21, 2024, WazirX stated that the Bounty Program offers up to $10,000 USDT to anyone who can track and freeze the stolen funds. Additionally, they are offering an incentive of 10% of the total recovered funds, up to a maximum of $23 million, through a white hat recovery bounty program.
WazirX experienced the hack on July 18, 2024, after suspicious transactions involving the exchange's Safe Multisig wallet on the Ethereum network were detected. The perpetrators managed to steal various types of cryptocurrencies including Shiba Inu (SHIB), Ethereum (ETH), Polygon (MATIC), Floki (FLOKI), and several other altcoins.

Trading Temporarily Suspended on WazirX

Due to the hack, WazirX decided to temporarily suspend trading activities as it impacted their ability to maintain a 1:1 collateral with crypto assets. Nischal Shetty, Co-Founder of WazirX, said that his team is currently implementing various precautionary measures, including seeking assistance from experts and over 500 other exchanges to help block the hacker's addresses so the stolen funds can be recovered quickly.

Shetty also mentioned that his team is analyzing data to understand the extent of the damage caused by the attack. This analysis is deemed crucial to formulate an effective recovery plan and ensure all possible steps are taken to address the impact on customer funds.
“This is an unprecedented attack on one of the largest crypto exchanges in India. It has negatively impacted the entire Web3 ecosystem. I am grateful to everyone in the ecosystem for their support in helping resolve this issue,” said Shetty.

Seeking Police Assistance

WazirX reported the incident to Indian police, FIU-INDIA, and CERT-In. They are collaborating with experts and authorities to catch the hackers while cautioning users against impersonators in emails.

conclusion

In response to a significant hacking incident that resulted in the theft of approximately $230 million in cryptocurrency, WazirX has launched a proactive Bounty Program aimed at recovering the stolen assets. By offering up to $10,000 USDT and additional incentives up to $23 million, WazirX is mobilizing a community effort to track and freeze the stolen funds. This approach not only leverages the expertise of white hat hackers but also demonstrates WazirX's commitment to restoring the compromised assets.

The suspension of trading activities by WazirX underscores the severity of the breach and the exchange's dedication to maintaining the security and integrity of its platform. Co-Founder Nischal Shetty's proactive measures, including collaboration with experts and multiple exchanges, highlight the comprehensive strategy being employed to mitigate the impact of the hack. The ongoing data analysis aims to gauge the full extent of the damage and inform an effective recovery plan, ensuring that customer funds are protected and confidence in the platform is restored.

Furthermore, WazirX's swift action in involving law enforcement and regulatory bodies such as the Financial Intelligence Unit India and CERT-In reflects the seriousness with which the exchange is addressing the incident. By working closely with forensic experts and law enforcement agencies, WazirX aims to bring the perpetrators to justice. Their cautionary advice to users about potential impersonators emphasizes the importance of vigilance in the face of cyber threats. This multifaceted response highlights WazirX's resilience and commitment to safeguarding its users and the broader crypto ecosystem.

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