WazirX, a popular cryptocurrency exchange, is under intense scrutiny from major government agencies following a massive cyber hack in July 2024 that led to a loss of Rs 2,000 crore (around $234 million). As millions of users anxiously await the recovery of their investments, concerns are growing about the impact on Indian investors, who make up a significant portion of the exchange’s users. Agencies such as the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and Indian Computer Emergency Response Team (CERT-In) have been actively investigating the breach to determine how the stolen assets were accessed and what steps can be taken to recover them.
IB and CERT-In Investigating the Hack
According to reports, top officials from FIU, IB, and CERT-In have been meeting with WazirX executives to get to the bottom of the hack. CERT-In, which is responsible for cybersecurity under the Ministry of Electronics and Information Technology, is focusing on the technical details of the breach. Meanwhile, the IB, under the Home Ministry, is reviewing security and counterintelligence matters, while the FIU, overseen by the Finance Ministry, is looking into financial transaction records to trace the stolen funds.
Hackers Use Tornado Cash Platform
Reports suggest that hackers have already begun withdrawing stolen digital assets through Tornado Cash, an open-source cryptocurrency mixing platform that operates on Ethereum-compatible networks. This platform allows the hackers to obscure the origins of the stolen funds, making it harder for authorities to trace them.
WazirX, which admitted that about 43% of its users may not recover their investments, has handed over server and transaction logs to assist in the investigation. Despite the exchange’s efforts, users are becoming increasingly frustrated. The situation escalated last week when WazirX removed a YouTube video of a town hall session, which promised guaranteed profits to users, raising further concerns among its investor base.
