Government Investigates INR 2,000 Crore WazirX Hack as Millions Demand Refunds

Nitin Konde

Oct 7, 2024 — 2 min read

Government Investigates INR 2,000 Crore WazirX Hack as Millions Demand Refunds

The country's top government agencies are now investigating cryptocurrency exchange WazirX, which experienced a big cyber theft in July that cost INR 2,000 crore, or roughly $234 million. Millions of users are still waiting for their money in digital assets to be returned.

The government is reportedly worried about the effects on WazirX investors; therefore, representatives from the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In) met with the company's top executives to enquire about the hacking of cryptocurrency tokens.

According to a media report, the cryptocurrency exchange has given the requested material, and investigatory teams are going over the specifics. Given the severity of the WazirX cybercrime, legal experts in the nation have already requested that state authorities conduct a comprehensive investigation.

43% Likely to Lose Money-Claims the Company

Nearly 43% of WazirX consumers, mostly in India, stand to lose money that has been stolen from their digital assets, as the company has already acknowledged. Meanwhile, the WazirX theft hackers have begun removing their pilfered digital assets through the Tornado Cash platform, an open-source, completely decentralized cryptocurrency mixer platform that operates on networks compatible with the Ethereum Virtual Machine.

The video of a live town hall meeting where the management promised to share "100% profits from any crypto price appreciation in the future with users" was taken down by WazirX, according to new reports that surfaced last week.

Developments During the Town Hall Session

Affected users asked questions during the town hall session, which was attended by George Gwee, director of the Kroll legal company handling WazirX's restructuring following the hack, and Nischal Shetty, co-founder of WazirX.

Gwee stated in the video that consumers will receive 100% of any earnings from the increase in cryptocurrency prices during the reorganization process, according to another media report. Subsequently, WazirX management changed the live feed to "private." In the Townhall event, Shetty asserted that 87% of the 4.4 million users of the exchange have only 8% of their cash in the exchange.

About WazirX

WazirX is more than just a digital asset trading platform since its founding in 2018. The path has been driven by enthusiasm, determination, and a desire to provide all Indians with democratized access to cryptocurrency. WazirX is the market leader in terms of transaction volumes, boasting a listing of over 350 cryptos and tokens and over 16 million users. This solidifies WazirX's position as a reliable leader in the nation's cryptocurrency market.