Jai Sahu
Government Agencies Probe WazirX Hack
Indian government agencies, including the Financial Intelligence Unit (FIU), are investigating a $235 million hack targeting WazirX, amid suspicions of insider involvement.
The crypto exchange WazirX is working closely with authorities, such as the Financial Intelligence Unit, to address the $235 million theft from its wallet in July. Sources told Moneycontrol that the exchange has shared detailed logs, transaction records, and blockchain addresses with investigators.
While no physical assets have been seized, WazirX has been in ongoing discussions with regulatory agencies, the report notes.
The FIU has also contacted other industry stakeholders to gauge the broader implications of the hack, highlighting concerns over the unregulated nature of the crypto sector and its effects on retail investors.
Transparency and User Queries
WazirX plans to release wallet addresses publicly through court affidavits and will answer user queries as part of its transparency efforts. By October 9, the exchange hopes to establish a 10-member committee of creditors to assist in restructuring, with the aim of returning 52-55% of the remaining crypto assets to clients within six months.
WazirX’s parent company, Zettai, has also reportedly begun talks with 11 potential partners. Preliminary proposals include strategies to boost user recoveries through capital injections and profit-sharing, though details are yet to be finalized.
Audit Findings and Restructuring Efforts
The July 18 cyberattack cost WazirX $235 million, pushing the exchange to pursue a Scheme of Arrangement under Singaporean insolvency laws. An independent audit conducted by Grant Thornton found no evidence linking Liminal Custody, WazirX’s custodian partner at the time, to the breach.