Govt Agencies Start Probe Into WazirX’s $234 Mn Crypto Hack

SUMMARY

Government agencies have started investigation into the heist of WazirX’s $234 Mn hack, seeking information on the illegal transfer of crypto tokens from its wallets

A team of eight to ten officials from the agencies questioned WazirX executives at its Mumbai office to figure out the crypto hack

So far, the company’s probe has not found any evidence of foul play into the case

Months after cryptocurrency exchange WazirX suffered major security breach, resulting in withdrawals of around $234 Mn, government agencies have started investigation into the heist, seeking information on the illegal transfer of crypto tokens from its wallets.

As per Moneycontrol, over the past few weeks, officials from government agencies such as the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) are interrogating WazirX executives in connection with the crypto hack.

However, as per the report, the company’s probe has also not found any evidence of foul play into the case.

For the uninitiated, the FIU maintains records of all crypto exchanges and entities operating in the Indian market. While IB is primarily responsible for counterintelligence, and gathering intelligence apart from other duties to bolster national security.

Also, the CERT-In is an office under the Ministry of Electronics and Information Technology (MeitY), dealing with cyber security incidents.

A team of eight to ten officials from the agencies questioned WazirX executives at its Mumbai office to figure out the $234 Mn hack, the report added, quoting sources close to the matter.

WazirX reportedly has provided details on server and laptop logs, transaction trails, and the blockchain addresses linked to the hacking.

This development comes days after the crypto exchange company announced to form a committee of creditors (CoC) by October 9, which will include 10 members comprising users affected by the massive hack, to give WazirX advise and feedback on its restructuring plan, it said in a blog post.

The company, which initially filed for a moratorium, was recently granted a four-month period from the Singapore courts, providing no room for any legal action against WazirX during this time.

“The government is concerned about the size of the illegal transfer in WazirX as it impacts retail investors. The government agencies have reached out for some data to understand the structure, how the transfers happen and liquidity, etc. The hack happened because there are grey areas as the sector is unregulated,” the report quoted another source as saying.