As a seasoned crypto investor with over a decade of experience under my belt, I must say that news like this $235 million hack at WazirX, an Indian cryptocurrency exchange, is a double-edged sword. On one hand, it’s concerning to see such a significant loss and potential insider involvement in the industry. However, on the other hand, it highlights the growing maturity of the crypto sector as authorities are now collaborating with exchanges like WazirX to address these issues.
As a concerned crypto investor, I’ve been closely following the news about the ongoing investigation by India’s Financial Intelligence Unit and related agencies into my exchange, WazirX. The focus is on a significant crypto hack worth approximately $235 million. While I’m hopeful that this probe will bring clarity, there are suspicions of potential insider involvement in this matter, which I, like other users, am eager to see addressed.
It appears that Indian cryptocurrency platform WazirX is working together with various government departments, including the Financial Intelligence Unit, to handle the fallout from a cyberattack suffered in July, which led to the loss of approximately $235 million from their digital wallet. This information comes from sources familiar with the situation, as reported by Moneycontrol.
According to reports, the platform is said to have handed over comprehensive server records, transaction histories, and digital wallet addresses linked to the hack to authorities. Although no tangible property has been confiscated, WazirX remains actively involved in numerous discussions with regulatory entities, as suggested by the report.
Additionally, the Financial Intelligence Unit (FIU) has communicated with other participants within the cryptocurrency market to evaluate the far-reaching effects of this cyber attack. This incident has sparked worries regarding the lack of regulation in this sector and its potential influence on individual investors.
WazirX intends to reveal wallet addresses in court documents and address user inquiries as part of their transparency policy. The platform is working towards establishing a 10-member creditor committee by October 9, to assist with its restructuring process. They aim to return around 52-55% of the remaining digital assets to clients within six months.
It seems that the parent company of WazirX, named Zettai, is said to have engaged in conversations with around 11 prospective collaborators. These discussions are focused on strengthening user recovery processes via investments and revenue-sharing agreements, although the specifics of these talks have yet to be disclosed.
As a crypto investor, I’ve been closely following the recent developments with WazirX. After the significant $235 million loss incurred from the cyber-attack on July 18, the exchange had to turn to a Scheme of Arrangement in Singapore – a restructuring process under local insolvency laws due to the severe impact on their operations. However, I want to emphasize that an independent audit by Grant Thornton later found no indication that Liminal Custody’s infrastructure, which was WazirX’s custodian partner at the time, played any role in this multi-million dollar hack.
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2024-10-07 12:32