Fraudsters Steal $230 Million From WazirX In Latest Scam Activity

Cryptocurrency exchange WazirX has reported a $230 million hack on its platform to the police. The company said the scam happened on Thursday. It has also informed the Indian Computer Emergency Response Team about the incident. Working with CERT means the firm might get help from India’s top agency handling computer security issues.

WazirX Lost $230 Million Due To A Wallet Security Issue

The latest incident happened just a day after the cryptocurrency exchange lost $230 million because of a security problem with one of its wallets. WazirX said many other exchanges were helping them at that time.

WazirX quickly made plans to fix the problem. It tried to find the stolen money, regain customer assets, and look at the cyber attack more closely. The firm noted that it was working with experts and the police to find and persecute the people responsible.

A person familiar with the issues said the next step for the company is to get a First Information Report (FIR). When a complaint is made in India, the police prepare a First Information Report if they think an official investigation is needed. Involving the police means they will look more closely at WazirX’s records, systems, and security.

The Finance Ministry in India has yet to comment on the issue. Since there has yet to be a law about cryptocurrency in the country, most government groups can’t manage it. Only a little bit of the digital token issue in the sector is watched by the Financial Intelligence Unit (FIU-India).

WazirX Reports To Fiu-India About The Case But Couldn’t Get Answers From The Agency

WazirX is listed with FIU-India, a part of the Finance Ministry. The company recently sent a report about the incident to the agency. However, the FIU is only responsible for checking transactions under the Prevention of Money Laundering Act. Since the WazirX issue is about a security problem, it comes under something other than what the FIU handles. The FIU did not agree to talk in person.

The Associate General Counsel at Fireblocks, Joanna Cheng, said India had not established special cryptocurrency rules. She noted that the industry would significantly benefit from clear rules on security, consumer protection, and risk management.

Sumit Gupta, CoinDCX ‘s Co-founder, another well-known Indian cryptocurrency exchange, stated that the company had contacted WazirX’s customers to offer help. He added that CoinDCX is open to ideas on how it can provide more support.

WazirX continues to offer cryptocurrency services. It is based in Mumbai, India, and has a system that automatically matches people who want to buy and sell cryptocurrencies. The company started this system when the Indian central bank stopped local banks from working with cryptocurrency companies.