WazirX under scrutiny over ₹2000 crore hack: Government agencies launch investigation

tech.hindustantimes.com:

WazirX, one of the largest cryptocurrency exchanges in India, is under investigation by various government agencies following a significant cyber hack that occurred in July. This breach led to a loss estimated at Rs. 2,000 crore (approximately $234 million), leaving millions of users concerned about their investments. Authorities are now looking into the implications of this incident on WazirX's customer base.

Authorities from the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) have initiated inquiries into the hacking incident. Reports indicate that officials have met with WazirX executives to gather information regarding the attack on the platform.

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CERT-In, operating under the Ministry of Electronics and Information Technology, will handle the technical aspects of the investigation. The IB, which reports to the home ministry, will focus on security and counterintelligence issues. The FIU, under the finance ministry, will oversee financial transactions related to the hack.

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WazirX has complied with requests from these agencies, providing data that includes server logs, transaction trails, and blockchain addresses associated with the theft. The exchange has acknowledged that approximately 43 percent of its users may have lost funds due to the hack, with a significant impact on users in India.

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Following the incident, hackers have begun to withdraw the stolen digital assets through the Tornado Cash platform, a decentralised cryptocurrency mixer that operates on Ethereum-compatible networks according to a report by the news agency IANS. Additionally, recent reports have emerged indicating that WazirX removed a video from its YouTube