The troubled Indian cryptocurrency exchange WazirX is under investigation following a massive hack involving the illegal transfer of $234 million worth of crypto from its wallets on July 18. According to a report by Moneycontrol, WazirX’s founders were questioned by officials from several government agencies, including the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In), at the exchange’s Mumbai office.
The investigation team, comprising eight to ten officials, sought detailed information on the transfer, including blockchain addresses linked to the hackers, transaction logs, and server data. Despite suspicions of an inside job, no foul play has been detected thus far. Importantly, no personal assets, such as laptops, were confiscated during the investigation.
A source noted that the government is deeply concerned about the size of the illegal transfer, as it impacts retail investors and highlights the risks in an unregulated sector. The authorities are trying to understand the structure of the transfers and liquidity of the exchange, as well as the gaps that led to the hack.
FIU Reaches Out to Crypto Stakeholders Post-Hack
In the aftermath of the hack, the FIU, a key agency under the Ministry of Finance, has contacted several stakeholders within the Indian crypto industry for additional data. The Intelligence Bureau (IB) is reviewing the security and counterintelligence aspects, while CERT-In is handling the technical side of the investigation.
WazirX, one of India’s leading crypto exchanges, suffered a significant breach, losing nearly 45% of its Ethereum holdings in the attack. As the investigation continues, the exchange’s parent company, Zettai Pte Ltd, is engaging with 11 crypto exchanges and trading firms to secure emergency funding. Additionally, WazirX announced the formation of a Committee of Creditors (COC) as part of the restructuring process for Zettai.
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