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Bitcoinik
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Hacker Succeeded in Hacking the WazirX Crypto Wallet Because of Negligence & Fault in the KYC System
A new investigation found that the WazirX crypto exchange faced a cyber attack because of negligence by the WazirX team as well as a problem related to the KYC system.
WazirX was the most popular crypto trading exchange among Indian crypto traders, but unfortunately, 5 months ago, this crypto exchange faced a hacking incident & in that incident, the exchange lost nearly 50% of the customers’ funds. Currently, the WazirX leadership is seeking regulatory approval from the court in Singapore to reopen the crypto trading services.
In the initial phase of the investigation in this case, the Indian authorities investigated the case & found that a person named Souvik Mondal was behind the WazirX hacking account.Later investigation found that Mondal was unemployed as well as he had never heard about cryptocurrencies & someone used his identity to create an account on the WazirX crypto exchange. Reportedly, another person, Masoud Alam, used his KYC details & personal mobile number to create an account.On investigation, Alam said that he was a small crypto investor only who was contacted by another person, Hasan.
A popular Crypto X (formerly Twitter) account combined all these things in a single thread & noted that such types of disclosures are proof that WazirX’s KYC was not working properly and also the WazirX team ignored millions of worth of cryptocurrency deposits in a WazirX account belonging to an uneducated person, which is a abnormal case.
The KYC process is not functioning as it should. The #WazirX hack could have been easily prevented if the WazirX team had exercised proper due diligence. For instance, they should have flagged when they saw an image of an uneducated daily wage laborer receiving ₹1 crore in… pic.twitter.com/EjwJHqZbWJ
— Justice for WazirX Users (@IndiasCrypto) December 19, 2024
As per the latest reports, WazirX extended the expected customer fund distribution date to April 2025, more than 2 months from what was initially planned. As per allegations, the WazirX representative forcibly asked the court to extend the timeline, to get more time to mislead customers.
How #WazirX is mocking Singapore’s laws and @SingaporeCourtsWazirX asked for 6 months.Court said 4 months.WazirX said, "Nah, let’s do 6 anyway by April"Score: WazirX 1, Singapore Law 0.
— Justice for WazirX Users (@IndiasCrypto) December 20, 2024
Read also: Bitcoin Plunges 10% in One Day – Is This the Start of a Massive Rally?
WazirX was the most popular crypto trading exchange among Indian crypto traders, but unfortunately, 5 months ago, this crypto exchange faced a hacking incident & in that incident, the exchange lost nearly 50% of the customers’ funds. Currently, the WazirX leadership is seeking regulatory approval from the court in Singapore to reopen the crypto trading services.
In the initial phase of the investigation in this case, the Indian authorities investigated the case & found that a person named Souvik Mondal was behind the WazirX hacking account.Later investigation found that Mondal was unemployed as well as he had never heard about cryptocurrencies & someone used his identity to create an account on the WazirX crypto exchange. Reportedly, another person, Masoud Alam, used his KYC details & personal mobile number to create an account.On investigation, Alam said that he was a small crypto investor only who was contacted by another person, Hasan.
A popular Crypto X (formerly Twitter) account combined all these things in a single thread & noted that such types of disclosures are proof that WazirX’s KYC was not working properly and also the WazirX team ignored millions of worth of cryptocurrency deposits in a WazirX account belonging to an uneducated person, which is a abnormal case.
The KYC process is not functioning as it should. The #WazirX hack could have been easily prevented if the WazirX team had exercised proper due diligence. For instance, they should have flagged when they saw an image of an uneducated daily wage laborer receiving ₹1 crore in… pic.twitter.com/EjwJHqZbWJ
— Justice for WazirX Users (@IndiasCrypto) December 19, 2024
As per the latest reports, WazirX extended the expected customer fund distribution date to April 2025, more than 2 months from what was initially planned. As per allegations, the WazirX representative forcibly asked the court to extend the timeline, to get more time to mislead customers.
How #WazirX is mocking Singapore’s laws and @SingaporeCourtsWazirX asked for 6 months.Court said 4 months.WazirX said, "Nah, let’s do 6 anyway by April"Score: WazirX 1, Singapore Law 0.
— Justice for WazirX Users (@IndiasCrypto) December 20, 2024
Read also: Bitcoin Plunges 10% in One Day – Is This the Start of a Massive Rally?
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