Cyber Crime
WazirX Hacking Case: How Hackers Got Hold of $235 Million in Tokens, Government Agencies Question Crypto Exchange Founders
Cryptocurrency exchange WazirX, which has around 15 million investors, faced a major cyberattack on July 18, resulting in the theft of $235 million from its Ethereum wallet. The hack led to the loss of approximately 45% of the exchange’s assets. WazirX is now working closely with government agencies to investigate the incident.
Several government authorities, including the Financial Intelligence Unit (FIU), the Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In), have been questioning WazirX’s founders over the past few weeks regarding the illegal transfer of crypto tokens from the exchange’s wallet on July 18. According to an industry source, officials have requested detailed information about the unauthorized transfers.
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WazirX has also been exploring the possibility of an internal conspiracy but has not uncovered any wrongdoing so far. A team of 8 to 10 government officials visited WazirX’s Mumbai office to conduct meetings with the exchange’s staff to understand how hackers managed to steal the $235 million in tokens.
Agencies’ Responsibilities
The FIU, which operates under the Ministry of Finance, is responsible for monitoring and analyzing suspicious financial transactions. The IB, which comes under the Ministry of Home Affairs, has been tasked with reviewing the security and counterintelligence aspects of the hack. Meanwhile, CERT-In, the nodal agency for dealing with cyber threats under the Ministry of Electronics and IT, is handling the technical aspects of the cybercrime investigation.
Details Shared by WazirX
WazirX has reportedly provided logs from its servers and laptops, transaction trails, and blockchain addresses linked to the hack. Although no physical assets, such as laptops, have been seized, multiple meetings have taken place between the exchange and the authorities. The exchange continues to cooperate with the government and regularly updates the agencies on the progress of the investigation.
Additionally, FIU and other agencies have reached out to various stakeholders in the crypto industry, especially after the WazirX hack. The government is concerned about the scale of the illegal transfers, as it has a direct impact on retail investors. Sources suggest that the authorities have sought information to better understand the exchange’s structure, transfer mechanisms, and liquidity.