Regulatory Compliance and Security Measures Under Scrutiny Following WazirX Crypto Exchange Hacking Incident
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Hacker Succeeded In Hacking The WazirX Crypto Wallet Because Of Negligence & Fault In The KYC System
A recent investigation has revealed that a hacker successfully breached the WazirX crypto exchange’s wallet due to reckless neglect and a flawed Know-Your-Customer (KYC) system. The shocking finding underscores the need for enhanced security measures in the cryptocurrency industry.
WazirX, which was once the most popular crypto trading platform among Indian traders, unfortunately suffered a massive hacking incident five months ago, resulting in the loss of nearly 50% of its users’ funds. In an effort to reopen operations and re-establish trust with its customers, WazirX is seeking regulatory approval from the Singapore court.
Initially, the Indian authorities investigated the breach and identified Souvik Mondal as the culprit behind the hacking incident. However, further investigation revealed that Mondal was a mere pawn in the game – he was unemployed and had no knowledge of cryptocurrencies. In fact, someone else used his identity to create an account on WazirX.
The inquiry also uncovered another surprising twist: Masoud Alam, a small-scale crypto investor, claimed that Hasan contacted him and manipulated him into using his KYC details and personal mobile number to create yet another account. This astounding revelation raises grave concerns about the efficacy of WazirX’s KYC system.
Critics point out that such lapses are unacceptable and that proper due diligence would have prevented this hacking incident altogether. The WazirX team neglected its responsibility in monitoring suspicious activity, allowing millions worth of cryptocurrency to be deposited into an account belonging to an uneducated daily wage laborer, a glaring instance of negligence.
As the dust settles on this debacle, it is essential for crypto exchanges like WazirX to review their security protocols and ensure that they are functioning as intended. The recent events have highlighted the need for more stringent measures to prevent such breaches from occurring in the future.
In related news, WazirX has announced an extension of its expected customer fund distribution date to April 2025, exceeding the initial planned timeline by over two months. Critics have questioned the move, speculating that WazirX aims to use this extra time to deceive customers further.
Sources:
* https://www.bitcoinik.com/hacker-succeeded-in-hacking-the-wazirx-crypto-wallet-because-of-negligence-fault-in-the-kyc-system/
Source: bitcoinik.com
