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FIU Launches Investigation into WazirX Amidst $235M Crypto Hack Fallout

The Indian crypto exchange WazirX is under scrutiny as the Financial Intelligence Unit of India (FIU-IND) initiates an investigation following a significant $235 million hack.

This probe comes in the wake of allegations surrounding the hack and the platform's handling of funds, raising concerns within the crypto community.

WazirX, operated by Zanmai Labs Pvt Ltd, has previously faced controversies, and this investigation signals a potential regulatory crackdown on cryptocurrencies in India.

The official FIU notice has reportedly been confirmed through reliable sources, solidifying its seriousness and further alarming users and investors.

Notably, the hack, linked to the notorious Lazarus Group, exploited a vulnerability that allowed significant assets to be siphoned off undetected.

As a response to the inquiry, WazirX’s founder Nischal Shetty has been proactive in attempting to regain user trust, engaging in public dialogues and promising to address investor losses.

However, skepticism persists among users, some of whom believe Shetty's actions are merely a form of damage control rather than genuine efforts to rectify the situation.

The FIU's involvement could pave the way for more stringent regulations in India's cryptocurrency landscape, potentially restoring investor confidence in the long run.

As developments unfold, the key question remains whether the government will provide compensation to affected users and in what form—crypto or fiat.

The ongoing investigation underscores the critical need for robust security measures and regulatory frameworks to safeguard the rapidly evolving crypto market.