India’s officials are currently investigating the popular cryptocurrency exchange WazirX over a $235 million hack that occurred in July, according to a report by Moneycontrol. The Financial Intelligence Unit and other government agencies are working closely with WazirX to address the aftermath of the cyberattack, which raised concerns about the unregulated nature of the industry and its impact on retail investors.

WazirX has been cooperating with authorities by providing detailed server logs, transaction trails, and blockchain addresses related to the hack. The exchange has also announced plans to publicly disclose wallet addresses through court affidavits and respond to user queries in an effort to maintain transparency.

In an attempt to recover from the hack, WazirX is aiming to form a 10-member committee of creditors by October 9 to guide its restructuring efforts. The exchange hopes to return 52-55% of the remaining crypto assets to clients within six months. Additionally, WazirX’s parent company, Zettai, has reportedly initiated discussions with 11 potential partners to enhance user recoveries through capital injections and profit-sharing strategies.

Despite the significant loss incurred from the cyberattack, an independent audit by Grant Thornton found no evidence implicating Liminal Custody’s infrastructure, WazirX’s custodian partner at the time, in the multi-million dollar hack. The exchange has sought a Scheme of Arrangement in Singapore, a restructuring process under local insolvency laws, to navigate the aftermath of the hack.

The investigation into WazirX’s $235 million hack highlights the challenges faced by cryptocurrency exchanges in ensuring the security of user funds and maintaining regulatory compliance. As the industry continues to evolve, it is crucial for exchanges to prioritize security measures and transparency to protect investors and uphold the integrity of the market.