On Thursday, cryptocurrency exchange WazirX filed a police complaint following a $230 million hack. The firm also reported the incident to the Indian Computer Emergency Response Team (CERT-In) via a post on X, seeking assistance from the agency responsible for managing computer-related security incidents in India.
The hack resulted in $230 million being withdrawn from one of WazirX’s wallets. The exchange stated that it is working with several other exchanges to trace the stolen funds, recover customer assets, and conduct a comprehensive analysis of the cyber attack. WazirX is also collaborating with forensic experts and law enforcement agencies to identify and apprehend the perpetrators.
A source informed that the next step involves filing a First Information Report (FIR). In India, an FIR is prepared by the police if they decide an official investigation is necessary following a complaint. This could lead to a thorough examination of WazirX’s financial records, operating systems, and security protocols.
WazirX has also reported the incident to FIU-India, which operates under the Finance Ministry. However, as the breach pertains to security rather than money laundering, it does not fall within FIU’s scope. The FIU declined to comment on the matter.
The absence of specific cryptocurrency regulations in India has been underscored by this incident. Joanna Cheng, Associate General Counsel at Fireblocks, highlighted the need for clear regulatory guidelines on security standards, risk management, and consumer protection. “Regulatory intervention in this space would also ensure that exchanges servicing large numbers of retail customers are held accountable for their actions or inactions,” Cheng said.
Sumit Gupta, co-founder of CoinDCX, another prominent Indian cryptocurrency exchange, expressed support for WazirX, stating that they had reached out to offer assistance and are open to suggestions on how they can support affected customers.
India’s crypto advocacy body, the Bharat Web3 Association, has not yet commented on the hack.
As WazirX deals with the repercussions of this significant security breach, the Indian cryptocurrency community is calling for more stringent regulations to prevent such incidents and enhance the overall security of the industry.
