Indian Authorities Investigate $234 Million Hack of Crypto Exchange WazirX

Indian Authorities Investigate $234 Million Hack of Crypto Exchange WazirX

Indian government officials have launched an investigation into the $234 million hack of crypto exchange WazirX, focusing on the illegal transfer of funds from its wallets on July 18. The probe, conducted by teams from the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and Indian Computer Emergency Response Team (CERT-In), has involved meetings with WazirX’s founders in the exchange’s Mumbai office. Officials have been examining how tokens worth millions were moved to hacker-controlled accounts, while WazirX has shared transaction records, blockchain addresses, and server data. So far, no evidence of an inside job has been found.

The FIU is concerned about the hack’s impact on retail investors and is working with other agencies to understand how the unregulated crypto sector enabled such a breach. The CERT-In team is focused on the technical aspects of the incident, while IB is reviewing security and counterintelligence elements. WazirX, a leading Indian crypto exchange, lost 45% of its holdings during the hack, primarily from its Ethereum wallet.

In response to the breach, WazirX’s parent company Zettai is seeking emergency funding from 11 crypto exchanges and firms to stabilize its operations. The exchange also announced the formation of a Committee of Creditors (COC) as part of a restructuring plan for Zettai Pte Ltd, which was made public on October 4.