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WazirX Allocates $12M to Recover from Devastating Cyberattack

WazirX Takes Drastic Measures to Recover from Devastating Cyberattack In response to a devastating cyberattack, WazirX has made the difficult decision to set aside $12 million to cover legal expenses and fund ongoing investigations. The popular cryptocurrency exchange is struggling to regain user funds and stabilize its operations after a cyberattack on its website in …

WazirX Takes Drastic Measures to Recover from Devastating Cyberattack

In response to a devastating cyberattack, WazirX has made the difficult decision to set aside $12 million to cover legal expenses and fund ongoing investigations. The popular cryptocurrency exchange is struggling to regain user funds and stabilize its operations after a cyberattack on its website in July resulted in the theft of an estimated $230 million in digital assets, including Shibu Inu tokens worth $102 million.

The incident has caused significant financial stress and raised alarm among the crypto community. WazirX’s holding company, Zettai Pte Ltd, has requested a 30-day moratorium to prevent further negative publicity from reaching investors and creditors, allowing the platform to regroup and plan its recovery. The moratorium is intended to prevent any more legal trouble that could potentially damage the recovery of user funds.

As a result of the attack, WazirX has suspended withdrawals, leaving many users in limbo. The exchange has announced that the $12 million will be used for ongoing investigations, legal proceedings, and restructuring efforts, with the added benefit of being kept on file. It is worth noting that Zettai Pte Ltd holds an eye-watering $284 million in crypto assets, which could potentially aid in the recovery process.

Additionally, WazirX is in discussions with 11 potential investors, referred to as “white knights,” who could potentially inject capital and provide crucial support for user fund recovery. To prevent the theft of assets from being laundered or circulated, it has contacted over 500 crypto exchanges across the country to request them to block identified wallet addresses associated with the stolen funds.

The exchange’s proactive approach demonstrates its commitment to recovering the stolen goods and increasing its credibility. However, the Shibu Inu token, which was among the most significant victims of the cyberattack, has not been disclosed in terms of its current value or potential price fluctuations. The token’s involvement in the incident highlights the weaknesses of the crypto space.

As WazirX navigates this challenging period, the entire cryptosphere will be watching with concern. The exchange’s success hinges on its ability to work together with investors, creditors, and regulatory bodies. Despite the $12 million grant, it is only the beginning of a long and complex journey towards restoring trust to users. WazirX will need to prioritize transparency, communication, and cooperation to achieve this goal, which could lead to broader positive outcomes for the crypto ecosystem.

For more insights and information on the crypto space, check out this article on CoinSeeks.com, which provides valuable insights on crypto security best practices and how exchanges can prevent cyberattacks.

Stay tuned for further updates on this developing story.

Kaan Akdag

Kaan Akdag

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