India’s largest cryptocurrency exchange, WazirX, is under investigation by Indian authorities in connection with a significant hack that resulted in the loss of $235 million in customer funds.
The incident, which took place on July 18, saw a substantial amount of crypto assets stolen by an unidentified hacker, who is reportedly laundering the proceeds through the Tornado Mixer service, according to Cryptopolitan.
In response to the breach, WazirX is cooperating with India’s Financial Intelligence Unit and other relevant agencies to investigate the possibility of insider involvement in the hack. The exchange’s collaboration aims to uncover the circumstances surrounding the incident and ensure the security of its platform moving forward.
The exchange is actively collaborating with Indian authorities by supplying server logs, transaction trails, and blockchain addresses related to the $235 million hack.
So far, no physical assets from the exchange have been seized as it continues to engage in multiple sessions with India’s Financial Intelligence Unit (FIU) and other agencies.
The FIU is also reaching out to other stakeholders in the cryptocurrency industry to assess the reputational damage caused by the hack.
Their efforts aim to address concerns regarding the unregulated nature of the crypto market and its impact on retail investor confidence. As the investigation unfolds, the focus remains on restoring trust in the platform and the broader industry.
WazirX has announced plans to ensure transparency throughout the recovery process following the recent hack, with the aim of returning 52–55% of affected user assets.
The exchange intends to publicly disclose wallet addresses via court affidavits and will provide clear responses to user inquiries.
Additionally, WazirX is forming a 10-member committee of creditors by October 9 to guide its restructuring efforts.
The exchange’s parent company, Zettai, is fully engaged in this process, developing strategies to minimize losses for both the platform and its clients. These initiatives reflect WazirX’s commitment to rebuilding trust and enhancing security for its users.
Before the hack, WazirX was the largest cryptocurrency exchange in India by transaction volume and customer base.
The exchange suffered a substantial loss of $235 million from the cyber attack on July 18, prompting outrage among its community, with accusations of potential insider involvement.
The fallout from the hack has significantly impacted WazirX, leading the exchange to pursue a Scheme of Arrangement in Singapore, a restructuring process under local insolvency laws.
This move aims to stabilize the platform and rebuild trust among its users while addressing the challenges posed by the attack.
