VerifiedX has launched recovery Vaults for Bitcoin-backed vBTC, allowing holders to stop suspicious or mistaken transfers before they become final. The feature arrived with Mainnet 9.0.0 on November 5, following the theft of 18,270 Bitcoin from a Binance hot wallet on October 29.
Since settled blockchain transfers are irreversible, VerifiedX inserts an owner-defined delay before a protected payment becomes final. Owners can call back the transfer and redirect funds during that window.
Vaults Add a Recovery Window
Users must activate a Vault and hold Bitcoin as vBTC within VerifiedX to use the protection. The company describes vBTC as a one-to-one Bitcoin-backed asset redeemable for $BTC. Owners can set a settlement time, review outgoing transfers, and cancel payments they identify as unauthorized or mistaken.
Recalled assets move to a self-custodial address selected by the owner. Owners define the recovery address themselves when setting up the Vault. VerifiedX says network consensus enforces the rules without a separate custodian taking control. The protections also cover its native VFX token and other assets issued on the network.
However, the feature does not reverse native Bitcoin transactions after confirmation. It applies to eligible transfers inside VerifiedX’s Vault system, not every Bitcoin wallet or exchange account.
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Mainnet Upgrade Adds Bitcoin Verification
Mainnet 9.0.0 also adds Bitcoin light-client software to VerifiedX validators. The company’s documentation says validators independently check Bitcoin block headers, proof of work, transaction inclusion, and chain progression. Bitcoin transactions must reach six confirmations before related changes are recognized on VerifiedX’s mainnet.
This verification is separate from the owner-set recovery delay. It strengthens how the network confirms the Bitcoin-backed vBTC, while the Vault gives users time to intervene in outgoing transfers.
Binance Hack Puts Recovery Tools in Focus
VerifiedX released the upgrade following Binance’s October 29 security breach, in which an attacker transferred 18,270 $BTC from a hot wallet to an attacker-controlled address. The incident highlighted the limitations of Bitcoin’s irreversible transactions and the difficulty of recovering funds once they reach unauthorized addresses.
Unlike stablecoins, which some issuers can freeze through built-in controls, Bitcoin has no central issuer with the same ability. VerifiedX is attempting to address this limitation through its owner-controlled recovery window for eligible assets held in its Vaults.
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