Officials from India’s Financial Intelligence Unit and other agencies are investigating WazirX over a $235 million cryptocurrency hack, as the exchange investigates possible insider involvement.
Indian cryptocurrency exchange WazirX is collaborating with government agencies, including the Financial Intelligence Unit, to address the aftermath of the cyberattack that led to the theft of $235 million from its wallet in July, Moneycontrol. I’ve learnedQuoting sources familiar with the matter.
The exchange reportedly provided authorities with detailed server logs, transaction trails, and blockchain addresses related to the hack. Although no physical assets were seized, WazirX continues to participate in multiple meetings with regulatory agencies, the report states.
The FIU has also reached out to other stakeholders in the cryptocurrency sector to assess the broader implications of the hack, which has raised concerns about the unregulated nature of the industry and its impact on retail investors.
WazirX plans to publicly disclose wallet addresses through court filings and respond to user inquiries as part of its commitment to transparency. The exchange aims to form a 10-member committee of creditors by October 9 to guide restructuring efforts, with the hope of returning 52-55% of remaining crypto assets to clients within six months.
Zettai, the parent company of WazirX, has reportedly begun discussions with 11 potential partners, and has received initial proposals aimed at boosting user redemptions through capital infusions and profit-sharing strategies, though the details of those talks remain unclear.
WazirX suffered a loss of $235 million from the July 18 cyberattack, which severely impacted the stock exchange and led it to seek a scheme of arrangement in Singapore, a restructuring process under local insolvency laws. An independent review by Grant Thornton later found no evidence to suggest that the infrastructure of Liminal Custody – which at the time was a WazirX partner – was involved in the multi-million-dollar hack.
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