WazirX, one of India’s largest cryptocurrency exchanges, is under intense scrutiny following a massive cyberattack.
The attack has prompted an extensive investigation by various Indian government agencies, local media reported on 7 October 2024.
Currently, the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) are investigating the exchange.
Read more: WazirX Customers May Recover 55-57% Of Funds In Best Case Scenario
No Evidence Of Internal Foul Play Yet
On 18 July, 2024, hackers made off with $235 million worth of crypto tokens from the exchange’s Ethereum wallet, accounting for nearly 45% of its total assets. The hack has raised alarms not only due to its scale but also because of its impact on retail investors.
The primary goal of the current investigation by the Indian authorities is to understand how such a significant breach could occur.
Apparently, WazirX has cooperated by providing access to server and laptop logs, transaction trails, and blockchain addresses linked to the hack.
Despite initial concerns about a potential inside job, no evidence of internal foul play has been detected so far.
The investigation highlights the vulnerabilities in the cryptocurrency sector, as 15 million investors face uncertainty regarding their investments.
The government is particularly concerned about the size of this illegal transfer and its implications for investor protection in an unregulated market.
As WazirX navigates through this crisis with restructuring efforts and potential acquisition talks, it remains to be seen how effectively it can restore trust among its users and stakeholders.
Will WazirX Be Able To Navigate Through The Crisis ?
The exchange’s Singapore-based entity, Zettai Pte Ltd, has filed for a moratorium in Singapore, which was granted by the court. This four-month moratorium period protects WazirX from coercive legal actions while it restructures its liabilities.
During this period, WazirX plans to publicly disclose wallet addresses through a court affidavit. It will also respond to user queries during court proceedings, and release its financial information. Additionally, it is setting up a 10-member committee of creditors (CoC) to advise on its business restructuring plan.
WazirX aims to return 52-55% of the remaining crypto assets to its clients within six months. To facilitate this recovery process, it is working with zeroShadow, a web3 security solutions provider, and Kroll, a financial and risk advisory firm.
Read more: WazirX Customers May Recover 55-57% Of Funds In Best Case Scenario
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
Free Bitcoin Crash Course
- Enjoyed by over 100,000 students.
- One email a day, 7 days in a row.
- Short and educational, guaranteed!
Maximize Your Trading With Margex’s 20% Deposit Bonus
Hottest Meme Coins to Buy in April? Retail Target Latest Crypto For Mega Gains
AR.IO Brings The Permanent Cloud to AI Storage Crisis
10 Best Crypto Bonuses in 2025 – Top Exchange Offers & Promotions
4 Days Left For Early Investors in World’s First Meme Coin Index: Meme Coin Mcap Hits $56Bn
