Indian Government Agencies Probe WazirX Hack as Exchange Seeks Recovery Path

In the wake of a massive $235 million hack, government agencies have launched a thorough investigation into the WazirX exchange breach.

Officials from the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) have been in close contact with WazirX founders, according to recent reports.

A team of up to ten officials from these agencies has been meeting with WazirX executives at their Mumbai office. The officials have been scrutinizing server logs, transaction trails, and blockchain addresses linked to the hack.

WazirX’s Road to Recovery

As investigations continue, WazirX is taking steps to stabilize its operations and reassure its users. The exchange’s parent company, Singapore-based Zettai Pte, has successfully filed for a four-month moratorium in Singapore courts.

In a bid to restructure its liabilities, WazirX is forming a 10-member committee of creditors (CoC) by October 9. This committee will advise on the exchange’s business restructuring plan. They also have the goal of returning 52-55% of remaining crypto assets to clients within six months.

Meanwhile, Zettai Pte is exploring potential partnerships, having received preliminary proposals from three large cryptocurrency exchanges. These proposals include strategies like capital injections, platform token distributions, and profit-sharing initiatives aimed at improving user recoveries.

The exchange has also enlisted the help of web3 security provider zeroShadow and financial advisory firm Kroll to trace assets and strategize recovery efforts.