Government Agencies Launch Investigation into WazirX's $234 Million Crypto Hack

Months after cryptocurrency exchange WazirX suffered major security breach, resulting in withdrawals of around $234 Mn, Government agencies have started investigation on the illegal transfer of crypto tokens from its wallets.

Officials from government agencies such as the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) are interrogating WazirX executives in connection with the crypto hack. A team of eight to ten officials from the agencies questioned WazirX executives at its Mumbai office to figure out the crypto hack.

WazirX reportedly has provided details on server and laptop logs, transaction trails, and the blockchain addresses linked to the hacking. So far, the company’s probe has not found any evidence of foul play into the case.

According to WazirX closed sources, the government is concerned about the size of the illegal transfer in WazirX as it impacts retail investors. The government agencies have reached out for some data to understand the structure, how the transfers happen and liquidity, etc. The hack happened because there are grey areas as the sector is unregulated.

This development comes days after the crypto exchange company announced to form a committee of creditors (CoC) by October 9, which will include 10 members comprising users affected by the massive hack, to give WazirX advise and feedback on its restructuring plan, it said in a blog post.

The company, which initially filed for a moratorium, was recently granted a four-month period from the Singapore courts, providing no room for any legal action against WazirX during this time.