Over 95% of crypto-associated frauds are off-chain

WazirX launches its 2nd edition of Transparency Report

● Over 95% of crypto-associated frauds are based outside of the Blockchain ecosystem

● Records 100% compliance on law enforcement requests; average TAT at 22 minutes

● 17,218 accounts were locked during the period, indicating a 19% increase from April – September, 2021 period

17 May, 2022, Mumbai: WazirX, the largest crypto exchange in the country, today released the second edition of its bi-annual WazirX Transparency Report for October 2021 – March 2022 period. The report provides an overview of initiatives and partnerships that the company took in the last 6 months to safeguard investors. During the mentioned period, WazirX has 100% compliance rate for all the 1023 requests received from Law Enforcement Agencies (LEA).

The findings suggest an increase in the number of accounts getting locked due to legal action from the company in comparison to the last report. This is attributed to the company’s cutting-edge tech-enabled monitoring capabilities through an optimum mix of Round-The-Clock Voice Support, Chat Support, and increased hiring of talent with domain expertise.

Commenting on the report, Nischal Shetty, CEO and Founder, WazirX, said, “The insights of the report indicate that even now the vast majority of scams are due to misinformation. They occur due to lack of awareness amongst users and indicate a requirement of large scale education and awareness programs to safeguard user interests. We are committed to strengthening the Virtual Digital Assets landscape in India through effective scrutiny and review, collaborations with compliance platforms and educational institutes to spread awareness to avert frauds.”

Some highlights of the report:

● Recorded an improvement in average turnaround time at 22 minutes, although recommended duration is 48 to 72 hours, as per IT Act, 2000.

● 952 queries were by Indian Law Enforcement Agencies, whereas the Foreign LEAs made 71 requests. 100% of these were criminal in nature.

● 17,218 accounts were locked, indicating a 19% increase from April – September, 2021. 73% of these locked accounts were due to requests initiated directly by the customers and 27% were locked by WazirX’s legal team due to ongoing investigations by LEA or payment disputes.

● Majority of the scams reported were traditional money market scams

Sr.No.CategoryPercentage Share
1Identity Falsification / Identity Theft5%
2Impersonation Cheating Scam25%
3Phishing / Airdrop Scams25%
4Ponzi Schemes and Social Engineering Scams40%
Source: Data from on ground collaboration with law enforcement agencies.

 Addressing the progress, Aritra Sarkhel, Director of Public Policy, WazirX, remarked, “WazirX has showcased an exponential growth in the adeptness of processing queries within a stipulated time. We are taking active steps to ensure smooth transitioning of our users to Web3.0 while providing user centric experience and data privacy. We have also been conducting trainings for law enforcement establishments across the country to make sure we support them to identify and track any such frauds. Our efforts have led to an increase in queries from the LEAs and we have assisted them in tackling crimes related to crypto with a 100% compliance rate”.

WazirX is working with TRM Labs, a virtual digital asset compliance platform, to bolster security and upscale compliance initiatives. Additionally, the company is a responsible member of the Blockchain and Crypto Assets Council (BACC), along with other VDA exchanges, to implement self-regulation. Till date, WazirX has partnered with 4 State LEA Departments for customized training modules and seeks to take it for Pan-India.

The Exchange is also dedicated to protecting user interest and has adopted a multi-pronged approach for imparting education to the existing and potential crypto investors. It has already launched Blockchain courses with Gurukula Kangri, Haridwar. The latest blockchain accelerator program was launched in partnership with Atal Incubation Centre, a Goa-based startup incubator,) and Buidlers Tribe, a Web3 incubator.

These efforts are aimed to aid the users to make informed VDA investment decisions, by spreading the right message and information to foster a conducive investment environment.

For more detailed information, please refer to the attached transparency report:

1 thought on “Over 95% of crypto-associated frauds are off-chain”

  1. Pingback: LIVE- Talking Transparency & solving #support queries too with our "Batman to the rescue" - Crypto World Headline - Crypto World Headline

Leave a Reply

Scroll to Top
%d bloggers like this: