Crypto Exchange WazirX Files FIR After $230 Million Hack

WazirX, one of India’s leading cryptocurrency exchanges, has taken significant legal steps following a major security breach that resulted in losses exceeding $230 million. The exchange has officially filed a First Information Report (FIR) with local authorities, marking a crucial development in its efforts to address the hack and reassure its user base.

FIR Filing Details and Police Investigation

On August 5, 2024, WazirX announced via X (formerly Twitter) that it had lodged an FIR under the BNS and IT Act with the Special Cell of the Delhi Police. The report was filed at the PS Lodhi Colony station and involves the Intelligence Fusion & Strategic Operations (IFSO) unit of Delhi Police. This action follows an initial complaint that was submitted shortly after the cyberattack. The FIR aims to facilitate a comprehensive investigation into the breach of WazirX’s multisig wallet, which led to substantial financial losses.

WazirX’s official statement underlines their commitment to cooperating fully with the authorities and recovering the stolen assets. The exchange has faced significant backlash from users over the delay in formalizing the FIR, but has assured its community that every effort is being made to resolve the situation. The platform’s ongoing updates focus on its recovery efforts and enhancing security measures.

Community Reactions and Response to Delays

The announcement of the FIR has been met with mixed reactions from the crypto community. Some users have expressed frustration over the perceived delay in filing the report, arguing that swift action was necessary. WazirX addressed these concerns by clarifying that the FIR process inherently involves a period of time after the initial complaint is lodged. Nischal Shetty, WazirX’s co-founder, emphasized the platform’s dedication to tracking down the perpetrators and recovering the stolen funds. Shetty reassured users that the company is diligently working toward solutions and improving its security protocols.

Scrapping of Loss Distribution Plan

In response to community outrage, WazirX recently decided to abandon its initial loss distribution plan. This plan was designed to allocate recovered funds among affected users but faced severe criticism from the crypto community. The decision to scrap the plan reflects the exchange’s efforts to address user concerns and adjust its approach based on feedback.

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