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FIU, IB, CERT-In investigate $230 million WazirX hack

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Officials from India’s top government agencies, including the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In), have been meeting with the founders of WazirX cryptocurrency exchange to investigate the July 18 cyberattack that resulted in the illegal transfer of $230 million worth of crypto tokens.

The investigation focuses on how such a significant breach occurred and what steps WazirX takes to mitigate the damage, reports Moneycontrol.

The meetings, which took place over several weeks at WazirX’s Mumbai office, involved a team of eight to ten officials from these agencies. The focus was on understanding how the hack unfolded and tracking the movement of the stolen tokens.

WazirX has provided the government with crucial information, including server and laptop logs, transaction trails, and the blockchain addresses linked to the breach.

FIU, operating under the Finance Ministry, leads the investigation from a financial crime perspective, analysing suspicious financial transactions. Meanwhile, IB is focused on national security and counterintelligence concerns, and CERT-In, responsible for addressing cybersecurity threats, is investigating the hack’s technical aspects.

WazirX has formed a committee of creditors to facilitate the restructuring process.

While the investigation is ongoing, no physical assets, such as laptops, have been seized. However, government officials are actively seeking data from WazirX and other industry stakeholders to understand the mechanisms of the illegal transfer better.

Following the hack, WazirX’s parent company, Singapore-based Zettai Pte Ltd, filed for a moratorium in Singapore to protect the exchange from legal action while it restructures its liabilities. The Singapore court granted a four-month moratorium, allowing WazirX to focus on recovery efforts without facing coercive legal measures.

During this period, WazirX plans to disclose wallet addresses, respond to user queries in court, and release its financial information. Additionally, the exchange is forming a 10-member committee of creditors (COC) by October 9 for its restructuring plan.

WazirX aims to return 52-55% of its remaining crypto assets to its clients within six months.

Zettai has also initiated discussions with 11 crypto exchanges and trading firms to secure a ‘white knight’ investor to assist in recovery efforts. So far, three proposals have been received from large cryptocurrency exchanges, which include potential solutions like capital injections, token distributions, AirDrops, and profit-sharing initiatives aimed at boosting user recoveries.

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Kumar Hemant

Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: kumarhemant@pm.me

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