New Delhi, Saturday, October 12, 2024 – The Indian cryptocurrency exchange WazirX is under investigation by government agencies following a $234 million hack that took place on July 18, 2024. Local media outlet Moneycontrol reported that WazirX founders met with a team of officials from the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) at the exchange’s Mumbai office in recent weeks.
The investigation is centered around how the illegal transfer of funds occurred, with eight to ten officials probing WazirX executives about the transfer of tokens from the exchange’s Ethereum wallet to hacker-linked addresses. The government’s concern lies in the impact this hack has on retail investors, as the stolen funds amount to nearly 45% of the exchange’s assets.
Although WazirX has examined the possibility of an inside job, no evidence of foul play has been detected so far. Transaction details and blockchain addresses linked to the hack have been provided to the investigating authorities. However, no personal assets, such as laptops, were confiscated during the probe.
The FIU, which falls under the Ministry of Finance, is reaching out to crypto industry stakeholders in the aftermath of the hack. Meanwhile, the Intelligence Bureau is reviewing the security and counterintelligence aspects, and CERT-In is focused on the cybersecurity side of the breach.
The probe coincides with WazirX’s restructuring efforts. The exchange’s parent company, Zettai, is seeking emergency funding from 11 crypto exchanges and trading firms. Additionally, WazirX announced the formation of a Committee of Creditors (COC) on October 4, 2024, as part of Zettai’s restructuring process.
WazirX, one of India’s leading crypto exchanges, continues to address the aftermath of the major breach while engaging with authorities to resolve the security vulnerabilities exposed by the hack.
