Following a major hack of the WazirX crypto exchange, Indian officials have met with the company's leadership to discuss further actions.

Response to WazirX Hack

Officials from the FIU, IB, and CERT-In met with WazirX executives in Mumbai to investigate the incident. The hack resulted in the loss of approximately 45% of user assets, or around $235 million. During the investigation, authorities requested data on liquidity and transfer structures due to concerns over retail investors' security in regulatory gray areas.

Plans During Moratorium

WazirX filed for a four-month moratorium in Singapore to protect itself from legal actions while it restructures its liabilities. This means that no severe legal action can be taken against the exchange during the moratorium. During this period, WazirX is obliged to disclose wallet addresses via court affidavit, as well as financial details, and respond to all inquiries.

Role of the Creditors' Committee

WazirX announced the establishment of a 10-member Committee of Creditors (CoC) by October 9. This committee will serve as an advisory body for restructuring plans and is expected to include representatives selected transparently from creditor pools. Zettai, a crypto company, is reportedly in talks with 11 exchanges, three of which have offered financial support.

As investigations and recovery plans continue, focus remains on the exchange's responsibility to protect its users and their assets.