A recent investigation has revealed shocking details about the cyber attack that the WazirX crypto exchange faced. It was discovered that negligence on the part of the WazirX team, as well as issues with the KYC system, were major factors that led to the hacking incident.
WazirX, once the go-to crypto trading exchange for Indian traders, suffered a devastating hacking incident 5 months ago, resulting in the loss of nearly 50% of customers’ funds. The leadership of WazirX is now seeking regulatory approval from the court in Singapore to resume crypto trading services.
During the initial investigation, it was found that an individual named Souvik Mondal was linked to the hacking of the WazirX account. However, further probing revealed that Mondal was actually an unemployed individual who had no knowledge of cryptocurrencies. It was later discovered that his identity had been used by someone else to create an account on the WazirX platform. Another person, Masoud Alam, had used Mondal’s KYC details and personal mobile number to set up an account on WazirX. Alam claimed that he was a small crypto investor and had been contacted by a person named Hasan.
A well-known Crypto X account on Twitter highlighted these discrepancies in a tweet thread, pointing out that WazirX’s KYC system was flawed. The tweet mentioned that WazirX had overlooked large cryptocurrency deposits in an account belonging to an uneducated individual, which raised red flags.
Recent reports indicate that WazirX has pushed back the deadline for distributing customer funds to April 2025, citing the need for more time to ensure accurate distribution. However, there are allegations that WazirX is using this extension to deceive customers further.
In another tweet, concerns were raised about WazirX’s compliance with Singaporean laws. Despite the court setting a deadline of 4 months for fund distribution, WazirX insisted on a 6-month extension, showing a blatant disregard for legal regulations.
The unfolding events surrounding the WazirX hacking incident have raised serious questions about the security measures and regulatory compliance of crypto exchanges. It remains to be seen how WazirX will address these issues and regain the trust of its customers.