WazirX, an Indian cryptocurrency exchange, has filed a police complaint and reported the recent security breach of over $230 million to the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In).
WazirX said in the post on X, “In response to the cyber attack, we have filed a police complaint and are pursuing additional legal actions. We will keep the community updated as we proceed.”
On June 18, the cryptocurrency exchange’s $230 million in withdrawals due to a security vulnerability that compromised one of its wallets.
WazirX, a Finance Ministry-registered member of FIU-India, has sent an incident report to the FIU. But since the WazirX incident includes a security breach and the FIU is tasked with monitoring transactions under the Prevention of Money Laundering Act (PMLA), it is outside of the FIU’s purview.
According to the post, WazirX is addressing the issue in several ways. To blacklist the addresses linked to the incident, the exchange is contacting more than 500 exchangers.
Many exchanges are cooperating, and WazirX is working with them to deploy additional resources for recovery efforts. The company is also collaborating with forensic experts and law enforcement agencies to trace the stolen funds and recover customer assets.
The next step involves preparing a First Information Report (FIR) by the police to initiate an official investigation. In India, after a complaint is filed, the police will create a First Information Report (FIR) if they deem an official investigation necessary. This could lead to closer scrutiny of WazirX’s systems, security protocols, and records.
Joanna Cheng, Associate General Counsel at Fireblocks, said there is no crypto-specific regulation in India yet. Clear guidelines on security, risk management, and consumer protection would benefit the industry and ensure accountability for exchanges serving retail customers.
Sumit Gupta, co-founder of CoinDCX, said they have “reached out to WazirX to support their customers and are open to suggestions.” The Bharat Web3 Association did not immediately respond to requests for comment.
Also Read: Shock, Dismay, Humour Flood Internet after WazirX Hack
