SUMMARY
- Government agencies, including FIU, IB, and CERT-In, are investigating WazirX’s $234 Mn crypto hack.
- WazirX has shared transaction logs and blockchain addresses tied to the attack.
- WazirX has announced the formation of a Committee of Creditors (CoC) to assist in its restructuring efforts.
Government agencies have initiated a formal investigation into the $234 million cryptocurrency hack that struck WazirX, one of India’s largest crypto exchanges. The security breach, which occurred months ago, involved an illegal transfer of tokens from WazirX wallets. Agencies including the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and Indian Computer Emergency Response Team (CERT-In) are interrogating WazirX executives to uncover the details surrounding the hack.
According to a report by Moneycontrol, these agencies have been conducting interviews with key executives at WazirX’s Mumbai office over the last few weeks. A team of 8 to 10 officials is leading the investigation, and WazirX has already shared crucial data such as server logs, laptop records, transaction trails, and blockchain addresses tied to the cyberattack.
The FIU, which oversees financial and crypto exchanges operating in India, is working alongside the IB, an agency focused on counterintelligence and national security, and CERT-In, the government body tasked with handling cybersecurity incidents. The collaborative effort aims to trace the funds and assess the broader impact of the hack on retail investors, many of whom have been severely affected by the incident.
In response to the breach, WazirX has been proactive in its own internal probe but has yet to find evidence of foul play. Despite this, the exchange is taking significant steps toward restructuring. WazirX plans to form a Committee of Creditors (CoC), which will include ten members representing affected users, by October 9. The committee will provide advice and feedback on the company’s restructuring plan.
Additionally, WazirX has secured a four-month moratorium from the Singapore courts, granting the company temporary legal protection while it navigates its restructuring. This grace period shields the exchange from any immediate legal action, allowing it time to stabilize operations.
A source close to the investigation commented, “The government is concerned about the size of the illegal transfer in WazirX, as it impacts retail investors. Government agencies have reached out for data to understand the transfer structures and liquidity issues. The hack exposed the grey areas in the largely unregulated cryptocurrency sector.”
