According to the Moneycontrol report, WazirX founders met with around 10 government agency officials over the past few weeks with the officials seeking investigation on the hack and theft of crypto tokens from its wallets this year.
Officials from government agencies including such as the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In).
What ensued on WazirX This year?
WazirX is India’s largest cryptocurrency exchange platform with over 15 million users. The platform was hit by a cyberattack on July 18, which resulted in $235 million worth of crypto tokens being stolen from its wallet. This hack was about 45% of his entire holding assets.
As per the report, WazirX investigation the chance of an inside assignment behind the hack that departed it without 45% of its entire holding assets, but nothing caught so far.
Moneycontrol quoted another unnamed source as saying, “The hack happened because there are grey areas as the sector is unregulated.”
Financial Intelligence Unit (FIU): Of the above-mentioned government agencies, FIU comes under the Ministry of Finance and is answerable for processing and investigating suspicious financial transactions.
Intelligence Bureau (IB): The IB of the Home Ministry, reviews security and counter-intelligence.
Indian Computer Emergency Response Team (CERT-In): CERT-In, part of the Ministry of Electronics and IT, deals with cyber security threats.
What is WazirX doing to fix the issue?
The exchange is now performing with security firm zeroShadow and financial and risk advisory firm Kroll to track the hacked assets and also propose recovery strategies.
The report further reveals that the exchange will form a 10-member committee of creditors (CoC) on October 09, 2024. Plus, it is also restructuring to handle the massive liability.
Moreover, WazirX can also buy, as its Singapore-based parent company is in talks with 11 other exchanges for such a deal. According to the report, WazirX plans to return 52-55% of the crypto assets it holds to its customers over the next six months.
