Delhi Police’s Cyber Cell Unit Files FIR In $230 Mn WazirX Crypto Heist

WazirX on Tuesday (August 6) said that a first information report (FIR) has been filed in connection with a $230 Mn cyberattack on the crypto exchange last month.

In a post on X, WazirX cofounder Nischal Shetty said that the FIR was filed in response to a complaint filed by the startup last month with the special cell of New Delhi’s Lodhi Colony police station. 

The FIR has been lodged under relevant sections of the Bharatiya Nyaya Sanhita and the IT Act. 

“Based on a complaint filed by us in connection with the Cyber attack on our multisig wallet, the police has taken cognizance of the matter and a FIR under BNS & IT Act has been registered on 5th August 2024 at PS Special Cell, PS Lodhi Colony, New Delhi through Intelligence Fusion & Strategic Operations (IFSO) of Delhi Police,” said the crypto exchange’s handle on X.

The startup also said that it will cooperate with authorities to the “fullest extent” to recover the stolen funds and prosecute the individual involved. 

Clarifying on the FIR, Shetty said that the company had filed the complaint with police on the next day of the heist, adding that it takes “time” before the FIR is lodged. 

“Now before conspiracy theorists come forward, let me clarify that we had filed a police complaint next day of the cyberattack and had already made the announcement to everyone that (a) police complaint has been filed. It generally takes time for FIR after filing of the complaint. Just like all our customers, we too want the culprits of this theft to be caught and the funds recovered,” Shetty added.

At the heart of the crisis is the cybersecurity incident last month, which saw hackers decamping with $230 Mn worth of crypto assets from one of its multisig wallets, around 45% of total user funds on the exchange.

Right afterwards, WazirX halted operations and withdrawals on the platform and announced a bounty of $23 Mn for helping recover the stolen assets. Later on, Shetty also said that the company has sent records to nodal Indian cybersecurity body CERT-In and was in touch with regulators. 

However, what ruffled feathers was the crypto exchange seeking user feedback for a 55-45 proposal to socialise the losses. Under this plan, the company had suggested that users will only be able to trade and access 55% of their portfolio tokens, regardless of whether or not their crypto assets had been compromised in the hack. 

The company eventually shelved the plans after online backlash. The crypto exchange also reportedly approached Binance for help to bail out the affected customers.