WazirX hack , cryptocurrency hack: At this time, there is a bumper boom in cryptocurrency. Recently, the price of Bitcoin, the world's largest cryptocurrency in terms of market value, has reached $ 1,00,000 for the first time in history. In such a situation, about 1.5 crore users of WazirX, who fell victim to one of the biggest cyber attacks on the cryptocurrency exchange in July, are in shock. Will they also get the benefit of this?

Investor holdings worth $235 million (Rs 1,974 crore) or nearly half of the platform's estimated reserves were stolen. Since then, the remaining funds on the platform have been frozen and trading has been halted.

Understand here in 10 points what is happening right now regarding the WazirX hack...

1. WazirX Hack

WazirX, one of the largest cryptocurrency exchanges in India, was hacked in July 2024, with $235 million (almost half of its reserves) being stolen.

2. Funds

Following the hack, WazirX froze all remaining funds and halted trading, leaving 15 million users unable to access or withdraw their investment funds.

3. Emotional stress

Many investors, whose losses ranged from Rs 30,000 to Rs 1.5 crore, are facing severe emotional stress, financial difficulty, and even suicidal thoughts due to the hack.

WazirX

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4. The rising value of stolen tokens

Despite the theft, the value of the stolen crypto assets has increased significantly, rising from $235 million to $330 million, as crypto prices rose following the hack.

5. Money Laundering

The stolen funds were laundered through TornadoCash, a decentralized platform, making it difficult to track the source of the money and recover the stolen amount.

6. What does WazirX have to say?

WazirX announced plans to return 52% of its creditor claims through liquid assets ($284 million), while the remaining 48% will be distributed over time from future profits and recovery of stolen assets.

7. Disputed cut-off date

WazirX set a controversial cut-off date of July 18 to determine the claim value, angering investors as the value of their holdings rose following the hack.

8. Dispute over ownership

The ownership of WazirX is disputed with Binance, with Binance saying the acquisition deal was never completed due to Zettai not fulfilling its commitments.

9. Security concerns

Critics have raised concerns about WazirX’s security, particularly over storing $235 million worth of tokens in a single wallet, which some believe was attractive to hackers.

10. Legal challenges

Legal remedies for affected users are limited as crypto is not legally recognized as an investment class in India and law enforcement agencies are ill-equipped to investigate such complex cybercrimes.