In the wake of the cyberattack on July 18, 2024, which resulted in the theft of over $230 million, WazirX has launched a $23 million bounty program to recover the stolen assets. Co-founder Nischal Shetty unveiled the program to involve the community in tracing the funds, with the reward increased to address earlier concerns. Trading has been temporarily suspended as WazirX manages the breach.
WazirX Suspended Trading Amid Security Concerns
WazirX has temporarily suspended all trading activities on its platform in the wake of a severe security breach. This decision comes after the attack significantly impacted the exchange’s ability to maintain a 1:1 collateral ratio with its assets, raising concerns about its financial stability and its capacity to reimburse customers fully. The $230 million in missing assets is substantial for WazirX, which had reported holdings of approximately $500 million in its June proof-of-reserves disclosure. The exchange described the security breach as a force majeure event.
Bounty Increased to $23 Million
WazirX initially introduced its “bounty program” by offering $10,000 worth of USDT for actionable intelligence that could lead to freezing the stolen funds, along with a 5% white hat reward of the recovered amount. However, following criticism over the reward’s value, the offer was increased to $11.5 million. The Bounty was then increased to $23 million for recovering the $234 million in stolen assets. This update was shared in posts on the social media platform X, reflecting the exchange’s commitment to engaging the community in the recovery efforts.
WazirX Bounty Program Structure
According to WazirX Blog WazirX’s bounty program includes two key initiatives. The Track and Freeze Bounty offers up to $10,000 USDT for actionable intelligence that leads to the freezing of the stolen funds. Participants must collaborate with WazirX if they are unable to freeze the assets themselves. The bounty program will last three months from the announcement date.
The White Hat Recovery Bounty offers a 10% reward to ethical hackers and professionals who help recover stolen assets. The program will be active for three months, with potential adjustments depending on recovery progress. WazirX’s Founder, Nischal Shetty, highlighted the aim of utilizing community expertise to recover the funds and strengthen the security of the digital finance ecosystem.
In a recent update on X, WazirX shared that they have received over 80 intents for their bounty program within 24 hours. They emphasized the urgent need for additional support from their ecosystem, security professionals, and ethical hackers.
