WazirX under scrutiny over ₹2000 crore hack: Government agencies launch investigation
WazirX, one of the largest cryptocurrency exchanges in India, is under investigation by multiple government agencies following a serious cyber hack that occurred in July. The breach resulted in an estimated loss of Rs. 2,000 crore (about $234 million), leaving millions of users concerned about their investments. Authorities are currently reviewing the impact of this incident on WazirX’s customer base.
Which agencies participate in the investigation?
Authorities from the Financial Intelligence Unit (FIU), Intelligence Bureau (IB) and the Indian Computer Emergency Response Team (CERT-In) have begun investigating the hack. Reports indicate that officials met with WazirX executives to gather information regarding the attack on the platform.
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What is the role of CERT-In, IB and FIU?
CERT-In, under the Ministry of Electronics and Information Technology, will handle the technical aspects of the investigation. The IB, which reports to the Ministry of Home Affairs, will focus on security and counterintelligence issues. The FIU, part of the Ministry of Finance, will oversee financial transactions related to the hack.
WazirX complied with requests from these agencies, providing data including server logs, transaction paths, and blockchain addresses related to the theft. The exchange has admitted that around 43% of users may have lost funds due to the hack, which significantly impacted users in India.
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How do hackers exploit stolen assets?
Following the incident, hackers began withdrawing the stolen digital assets through the Tornado Cash platform, a decentralized cryptocurrency mixer that operates on Ethereum-compatible networks, the firm reported. IANS news. Additionally, recent reports have surfaced that WazirX has removed a video from its YouTube channel. This video showcases a live town hall that claims to guarantee “100% profits from any future cryptocurrency price increase to users.”
The ongoing investigation highlights the growing scrutiny of cryptocurrency platforms and the need for stronger security measures in the digital assets sector.
