Tornado Cash

Tornado

WazirX

Indian Government officials from the Financial Intelligence Unit (FIU), IB, and CERT-In have reportedly met with WazirX founders after the major $235 million crypto hack that took place on July 18. 
The meetings come as the hacked crypto exchange decided to set up a 10-member committee of creditors (CoC) by October 9.
The <a href="https://www.cryptopolitan.com/wazirx-suspects-internal-involvement/" rel="noopener noreferrer nofollow">hacked exchange</a> has so far cooperated with the agencies by providing regular updates to authorities, however, no physical assets have been seized yet. WizarX has shared details on server and laptop logs, including transaction trails and the blockchain addresses of the exploited accounts.
<h3 id="span-style-font-weight-400-wazirx-faces-fallout-from-235m-crypto-hack-span">WazirX faces fallout from $235M crypto hack</h3>
A team of 8-10 officials met with WazirX executives in Mumbai to probe the hacking incident as the race to recover the lost tokens continues. These agencies have also reportedly reached out to several crypto industry stakeholders after the incident.
FIU and other agencies are reportedly pressing crypto stakeholders for data on liquidity and transfer structures. Authorities are concerned about retail investors affected by the sector’s regulatory grey areas.
<a href="https://www.cryptopolitan.com/wazirx-to-restore-account-balances-of-users/" rel="noopener noreferrer nofollow">WazirX lost 45%</a> (about $235 million) of users’ assets in the exploit and is now facing scrutiny for its security lapses. 
The exchange filed for a 4-month moratorium in Singapore to protect itself from legal action while it restructures its liabilities. Its moratorium pleas were granted which implies that no fierce legal action could be taken against the hacked exchange during the process.
During the moratorium, WazirX will have to disclose wallet addresses via court affidavit, respond to queries, and release its financial details.&nbsp;
The Indian entity Zemnai manages the INR side of the business, while Zettai Pte (Singapore) handles crypto operations.&nbsp;&nbsp;
<h3 id="span-style-font-weight-400-will-the-span-span-style-font-weight-400-coc-be-the-solution-span">Will the CoC be the solution?</h3>
WazirX <a href="https://x.com/WazirXIndia/status/1841486345283526935" rel="noopener noreferrer nofollow" target="_blank">announced</a> that by October 9, a 10-member <a href="https://www.cryptopolitan.com/wazirx-committee-creditors-users-funds/" rel="noopener noreferrer nofollow">Committee of Creditors</a> (CoC) will be established to lead advisory efforts on the restructuring plan. The COC will represent creditors and is expected to act as a consultative body to provide feedback. Members of this committee will be chosen based on a transparent selection process across creditor pools.
The report mentioned that Zettai is in talks with 11 crypto exchanges. It has received three proposals from major platforms that have offered them capital injections, token distributions, airdrops, and profit-sharing to support user recoveries. The exchange aims to return 52-55% of the remaining crypto assets to clients within six months.
The hackers behind the WazirX breach have laundered the stolen $230 million through Tornado Cash which has further complicated recovery efforts for affected users.

Indian government agencies probe WazirX over $235 crypto heist

Table of Contents

Cryptopolitan_News

Other articles published on Oct 7, 2024

Ripple (XRP) Rebounds From $0.5 But Struggles To Break Beyond Current Range

Altcoin Season May Not Be Over Yet, Says Analyst Burak Kesmeci

ELONMAN Solana Memecoin Will Skyrocket 14,000% Ahead of Exchange Listing, As SHIB and BONK Lag

Santiment Reveals 10 Altcoins Experiencing Whale Activity Boom

61 African startups raised $138m funding in September, up from $56m in August

WazirX Cooperates with Indian Authorities Following $235M Hack; Plans User Compensation

Join our free newsletter for daily crypto updates!