A recent investigation has revealed that WazirX, the popular crypto exchange in India, fell victim to a cyber attack due to the negligence of the WazirX team and issues with their KYC system. This incident took place 5 months ago, resulting in the loss of nearly 50% of customers’ funds. The leadership of WazirX is currently seeking regulatory approval from the Singapore court to resume their crypto trading services.
During the initial stages of the investigation, it was discovered that an individual named Souvik Mondal was linked to the hacking of the WazirX account. Further investigation revealed that Mondal was unemployed and had no knowledge of cryptocurrencies. It was later revealed that another individual, Masoud Alam, had used Mondal’s KYC details and personal mobile number to create an account on the exchange. Alam, a small crypto investor, claimed that he was contacted by a person named Hasan.
A popular Crypto X account on Twitter highlighted these findings in a thread, pointing out that WazirX’s KYC system was not functioning properly. The account noted that WazirX had overlooked millions of dollars’ worth of cryptocurrency deposits in an account belonging to an uneducated individual, which was highly irregular.
Recent reports indicate that WazirX has extended the timeline for distributing customer funds to April 2025, two months later than originally planned. There are allegations that WazirX representatives pressured the court to extend the deadline in order to buy more time to deceive customers.
In another tweet, it was suggested that WazirX was disregarding Singapore’s laws by requesting a 6-month extension for fund distribution, despite the court’s decision to grant only 4 months. This situation has raised concerns about WazirX’s commitment to fulfilling their obligations within the legal framework.
As the investigation into the WazirX cyber attack continues, it is crucial for investors and users to exercise caution when dealing with crypto exchanges. The incident serves as a reminder of the importance of robust security measures and regulatory compliance in the cryptocurrency industry.