WazirX Introduces Bounty Program to Recover Stolen Funds Following Major Hack Attack
WazirX has become one of the most discussed topics following one of the biggest hack attacks in 2024. The trading platform has taken prompt action to reassure investors and contain the spread of the attack.
On this account, the platform halted withdrawals on a temporary basis and carried out research into customer funds. Furthermore, the management of the trading platform is working on maintaining the security of the platform.
WazirX to Halt Trading Activities
At the time of publication, WazirX has halted trading activities in order to investigate the incident. The platform has also launched a bounty program to freeze and recover siphoned funds.
The social media account of the platform updated investors that the attack has destabilized the 1:1 ratio of asset collateral funds and therefore the platform has decided to halt trading until further notice.
WazirX has also shared a number of actions that the platform has undertaken to address the issue. The exchange has filed a police report and shared the details of the attack with the Financial Intelligence Unit (FIU) and CERT-India.
Co-founder Nischal Shetty mentioned in a social media post that the exchange is in contact with 500 trading platforms in order to halt the addresses associated with stolen funds. He retained the importance of cooperation among trading platforms.
WazirX Collaborates with Private Investigators to Recover Funds
As per updates shared by the co-founder, WazirX noticed that the platform is working on launching a bounty program as a way to incentivize private investigators.
The bounty program has allocated funds and announced rewards for individual sleuths and private cybersecurity firms that can assist the platform in recovering siphoned funds. This program is part of the strategy to fast-track the process of funds recovery.
The team is also in talks with multiple groups and experts specializing in transaction tracking. A number of specialists are now working in tandem with WazirX to supervise and assist in funds recovery. WazirX also extended thanks to the broader Web 3.0 industry.
As per the trading platform, there is a need for collective efforts to address the issue and restore the integrity of the affected parties.
Shetty stated that the analysts at the platform are sweeping through data records in order to access the full extent of the damage. This analysis is important to devise a viable recovery plan and implement all necessary measures to address the impact on customer funds.
Additionally, WazirX has also disclosed consultation with forensic experts and law enforcement agencies to locate and apprehend the attackers. As per ZachXBT’s social media post, the attacker wallets account for $104 million in reserves that are yet to be sold.
SEBI India Directs Regulatory Agencies to Monitor Digital Asset Trading
The Securities and Exchange Board of India (SEBI) issued a directive for local regulatory agencies to monitor digital asset transactions. Reuters shared a number of documents containing Indian government correspondence noting that regulatory agencies should address the oversight.
Another notification issued by the Reserve Bank of India (RBI) retained that digital assets posited risks to the nation.
However, SEBI refrained from appointing a dedicated regulatory agency to monitor local digital asset sector and advised multiple regulators to take a collaborative approach depending on the aspect of digital asset trading that falls under their jurisdiction.
SEBI has nominated itself to supervise digital assets that qualify as securities and ICOs. On the other hand, RBI is set to monitor fiat-backed stablecoins.
The Insurance Regulatory and Development Authority of India will oversee the crypto insurance sector. At the same time, the dispute between crypto investors will be settled on the basis of the Consumer Protection Act of India.
On the other side, RBI has retained a passive stance towards the digital asset sector. The federal bank has proposed investigating digital asset investors for the tax-evasion and shared reservations about peer-to-peer transaction risks.
