WazirX Under Government Scrutiny Following ₹2,000 Crore Crypto Hack - Read Now
Cryptocurrency exchange WazirX is under the spotlight as it deals with the aftermath of a massive ₹2,000 crore (approximately $234 million) cyber theft that occurred in July. Millions of users are still waiting for their funds to be refunded, and the impact of the hack is felt most acutely among Indian investors.
Top officials from the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In) have met with WazirX’s leadership to discuss the hacking incident. The government is concerned about the implications for WazirX investors and has demanded answers regarding the stolen crypto tokens. WazirX has been cooperative, providing the necessary information for the ongoing investigation.
Legal experts have called for a thorough investigation into this significant cyber-crime, given its scale and the financial losses experienced by users. WazirX has admitted that nearly 43% of its users may lose their money due to this theft, a troubling statistic that raises alarm bells in the crypto community.
Adding to the concerns, reports indicate that the hackers behind the WazirX breach are now withdrawing the stolen digital assets through Tornado Cash, a decentralized cryptocurrency mixer on the Ethereum network. This method complicates efforts to trace the stolen funds, making recovery more challenging.
In the midst of these issues, WazirX has faced criticism for removing a YouTube video of a live town hall session where the management discussed sharing 100% of future profits from crypto price appreciation with users. The session included responses to queries from affected users, including WazirX co-founder Nischal Shetty and George Gwee, director of Kroll, the legal firm assisting WazirX with its restructuring post-hack.
After the hack, the video was made private, raising questions about transparency and communication with users. As WazirX navigates this turbulent period, investors and stakeholders are keenly watching how the situation unfolds.
