Indian crypto exchange WazirX is working closely with government authorities, including the Financial Intelligence Unit (FIU), to address the aftermath of a July hack that led to the theft of $235 million from one of its wallets, according to a report by Moneycontrol.
The exchange has provided authorities with detailed server logs, transaction records, and blockchain addresses linked to the hack to assist in the investigation. Its executives have also met with the FIU officials.
Per the report, the FIU has expanded its investigation by reaching out to other stakeholders in India’s crypto industry to evaluate the broader impact of the security breach.
Meanwhile, WazirX reportedly plans to disclose wallet addresses through court affidavits and address user concerns. The exchange is also aiming to form a 10-member committee of creditors by October 9 to oversee its restructuring. Its goal is to return 52-55% of the remaining crypto assets to affected users within six months.
WazirX’s parent company, Zettai, has also opened discussions with 11 potential partners to explore capital injections and profit-sharing strategies to improve user recoveries. Details of these proposals remain undisclosed.
The July 18 breach involved a major security lapse, with WazirX losing $230 million from a multisig wallet. The exchange quickly suspended withdrawals to protect user funds and launched an investigation. Blockchain analytics firm Lookonchain reported that over $230 million in digital assets were transferred to another wallet, with the attacker selling 640.27 billion $PEPE, worth approximately $7.6 million. No assets have been recovered so far.
Notably, in response to the breach, the Bharat Web3 Association (BWA) formed two task forces to enhance cybersecurity and safeguard consumer interests. One group is focused on strengthening security measures, while the other addresses user protection. BWA chairman Dilip Chenoy confirmed that an investigation is underway, with the task forces in close communication with WazirX and Liminal to conduct a thorough review of the incident.
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