It’s been two months since the destructive hack of WazirX, one of India’s largest cryptocurrency exchanges, which resulted in the theft of approximately Rs 2,000 crore (around $234.9 million) in user funds.The hack on July 18 shocked everyone in the crypto world, and now WazirX has stopped its operations after 2 months, Many users feel left out and worried about their money.
After the hack happened over the weeks, thousands of WazirX users have expressed their frustration and anger. Started protesting through social media and demanding accountability and a thorough investigation into the breach. Many suspect that there must be insider involvement and users are calling for a police investigation into co-founder Nischal Shetty. Despite the hack and the responses, WazirX’s management has largely stayed silent, leaving users without clear answers or not even a proper word of recovering their lost funds.
Lack of Response from Indian Authorities for WazirX Hack :
What’s particularly concerning for the users is the lack of action from Indian authorities. Even though this hack is the biggest in India’s cryptocurrency history, there hasn’t been any official investigation or help from the police. Users who lost millions feel ignored, and their calls for justice seems to be unheard.
A Well Planned WazirX Hack :
The hack itself was quite advanced, involving unauthorized transactions from WazirX’s multi-signature wallet to an external wallet on the Ethereum network. This breach impacted over 200 different cryptocurrencies, causing major losses for many users, that the notorious North Korean hacking group, Lazarus, might be behind the attack, adding a layer of doubt for users trying to make sense of the situation.
Meanwhile, WazirX introduced a controversial compensation plan that made user dissatisfaction. The plan offers a 55/45 loss-sharing ratio, meaning users would get back only 55% of their unaffected tokens, while 45% would be converted into USDT-equivalent tokens and locked. Many users feel this planit’s not fair and there were no transparency.
Many users were continuously following the actions made and been asking the detailed informations of the exchange and funds and the partnerships and storage, after every week there were a news by the founder regarding the exchange and funds
Legal Action on the WazirX Hack :
According to a detailed affidavit submitted to the Singapore High Court by WazirX’s parent company, Zettai Pte Limited, the situation is. The affidavit described WazirX’s users indicating that many may go with legal action to recover their losses. It also revealed that the exchange has received numerous withdrawal related emails and legal notices since the hack. The affidavit mentioned plans for a 30-day ban to protect the exchange from legal challenges and distribute the remaining $284 million in assets on a pro-rata basis for affected users.
Other Exchanges on WazirX Hack :
As the situation goes, other Indian exchanges like CoinDCX and CoinSwitch have tried to reassure their users about the safety of their funds. They’ve also mentioned about secure wallet systems and cold storage practices, Other exchanges are trying to stay clear of the problems happening at WazirX.
The hack has raised serious questions about the state of cryptocurrency regulation in India. Although the country has been recognized for its high levels of crypto adoption, the regulatory environment remains uncertain. As India prepares to start its new policies on cryptocurrency regulation, the WazirX incident serves as a critical reminder of the risks involved in the current landscape.
Binance move on WazirX Hack :
Moreover, WazirX’s ongoing dispute with Binance over control of the platform complicates the matters even. Binance’s decision to close wallets holding digital assets has forced WazirX to manage its tokens independently. Users are left wondering about the stability of the exchange and whether their funds are truly safe.
In short, the WazirX hack has shaken India’s crypto space, leaving users worried about their money and demanding more accountability and transparency. The need for better security and clearer rules is becoming more obvious.
