In July, WazirX, one of India’s largest cryptocurrency firms, was hit by a cyberattack, resulting in the theft of over $230 million of users' holdings [b9bb1d0c]. The exchange has filed a First Information Report (FIR) and is in touch with agencies including the Federal Bureau of Investigation (FBI) in the US. The hope is that the stolen crypto tokens are trackable and traceable, so when an attempt is made to launder the funds, it will raise an alert and withdrawals can be frozen [b9bb1d0c].
Indian crypto exchange Wazirx has announced that it will reverse all trades made after withdrawals were halted due to the cyberattack [0f0b27b4]. The process will take place over the next few days, restoring users' portfolio balances to their July 18 post-hack levels. This decision comes after concerns were raised on social media about the lack of updates and the exchange's response. Coindcx CEO Sumit Gupta urged Wazirx to prioritize customers' interests [0f0b27b4].
Wazirx stated that the restoration is necessary to protect the platform's integrity and ensure a fair outcome for affected users. The exchange believes that reversing the trades will help maintain transparency and prevent any unfair advantage for those who may have taken advantage of the situation [0f0b27b4].
This incident highlights the ongoing challenges of cybersecurity and cryptocurrency regulations in India. The theft of such a significant amount of cryptocurrency raises concerns about the security measures in place for cryptocurrency exchanges. It also underscores the need for robust regulations to protect investors and prevent cyberattacks on cryptocurrency platforms. The Indian government has been considering various approaches to regulate cryptocurrencies, with Finance Minister Nirmala Sitharaman stating that a Cabinet note on cryptocurrency legislation is being finalized. The incident involving WazirX may further fuel the government's efforts to establish clear guidelines and regulations for the cryptocurrency industry in India [b9bb1d0c].