Government agencies have launched a formal investigation into the $234 million cryptocurrency hack that recently impacted WazirX, one of India’s largest cryptocurrency exchanges. The security breach, which occurred months ago, involved the illegal transfer of tokens from WazirX wallets. Key agencies such as the Financial Intelligence Unit (FIU), the Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) are interrogating WazirX executives to unravel the circumstances surrounding the incident.
According to a report by Moneycontrol, interviews with key executives at WazirX’s Mumbai office have been ongoing for the past few weeks. A specialized team of 8 to 10 officials is spearheading the investigation. WazirX has already provided essential data, including server logs, laptop records, transaction trails, and blockchain addresses related to the cyberattack.
The FIU, responsible for regulating financial and crypto exchanges in India, is collaborating with the IB, which focuses on counterintelligence and national security, and CERT-In, tasked with managing cybersecurity incidents. This cooperative effort aims to trace the illicit funds and assess the broader impact of the hack on retail investors, many of whom have faced significant repercussions from the breach.
In response to the cyberattack, WazirX has undertaken its own internal investigation but has not yet discovered any evidence of wrongdoing. Nevertheless, the exchange is taking decisive steps toward restructuring. WazirX plans to establish a Committee of Creditors (CoC), composed of ten members representing affected users, by October 9. This committee will provide guidance and feedback on the restructuring strategy.
Additionally, WazirX has secured a four-month moratorium from the Singapore courts, granting the company temporary legal protection as it navigates its restructuring process. This grace period shields the exchange from immediate legal actions, allowing time for operational stabilization.
A source close to the investigation remarked, “The government is concerned about the magnitude of the illegal transfer in WazirX, as it directly impacts retail investors. Agencies have requested data to understand the structures of these transfers and related liquidity issues. This hack has exposed vulnerabilities in the largely unregulated cryptocurrency sector.”
Key Highlights:
- $234 million hack investigation: Government agencies, including the FIU, IB, and CERT-In, are probing the substantial security breach at WazirX.
- Formation of Committee of Creditors: WazirX plans to create a committee by October 9, featuring members representing affected users to guide the restructuring efforts.
- Four-month legal moratorium: WazirX has secured temporary legal protection from Singapore courts, allowing it to stabilize operations amid ongoing investigations.