Cryptocurrency exchange WazirX is currently facing scrutiny from key government agencies, including the Financial Intelligence Unit (FIU) and the Indian Computer Emergency Response Team (CERT-In), following a significant cyber theft of about ₹2,000 crore (approximately $234 million) in July. With millions of users awaiting refunds for their stolen digital assets, authorities are investigating the details of the hacking incident and its effects on investors.
Officials from the FIU and CERT-In have met with WazirX’s leadership to gather information about the breach, and the exchange has provided the requested data for review.
Legal experts are advocating for a thorough investigation due to the scale of the cyber-crime, with WazirX acknowledging that nearly 43% of its users risk losing their funds, particularly affecting Indian investors.
Additionally, the hackers involved have started withdrawing stolen assets via the Tornado Cash platform, a decentralized cryptocurrency mixer on Ethereum networks.
In a related incident, WazirX has taken down a YouTube video of a town hall meeting where management announced plans to share 100% of future profits from crypto price increases with users. Co-founder Nischal Shetty and George Gwee from Kroll—assisting WazirX in its restructuring—addressed user concerns during the session. Gwee confirmed that any profits made during the restructuring would be entirely shared with users, but the video has since been made private by the management.
Shetty indicated that 87% of WazirX’s 4.4 million users hold only 8% of the total funds in the exchange, highlighting the difficult position many investors find themselves in as the investigation unfolds.