Thousands of WazirX Hack victims unite on X Space for Justice

As a seasoned crypto investor with over a decade of experience under my belt, I’ve seen my fair share of market volatility and platform missteps. However, the WazirX fiasco has left me utterly disheartened and frustrated.

For approximately 25 days now, there’s been an eerie quietness surrounding the WazirX incident – India’s biggest cryptocurrency hack that led to a shocking loss of around Rs 2000 crore for investors. Neither the platform nor the Indian government authorities have offered any updates on the matter.

In a state of despair and worry, with no other options left, countless victims of the WazirX hack are now banding together on social media, pleading for justice and prompt reimbursement.

On Sunday, numerous WazirX investors gathered on a platform previously known as Twitter (now referred to as ‘X’), where they convened for a venue to deliberate on their upcoming strategies. This discussion was orchestrated by @Indiascrypto, an anonymous account established on Twitter with the purpose of bringing together those affected by the WazirX hack.

Our team at The Crypto Times delved deeply into the perspectives of numerous WazirX hack investors, participating in a Sunday conversation on topic X. This special feature highlights and analyzes the key aspects discussed by these investors during their session, which garnered significant attention.

Suspicion Over WazirX’s Hazy Financial Status

After the hack, as reported by multiple investors, the WazirX team temporarily restricted access to the proof-of-reserve feature on CoinGabbar, a popular news source focusing on cryptocurrency spheres.

The deactivation of the proof-of-reserve function on WazirX following the hack has sparked doubts about the platform’s financial stability, given its pledge to restore 55% of the assets.

🚨 Crucial Query!
Suppose WazirX employed our funds for margin trading during the recent 4-month bull market rush, amassing substantial profits. However, what if they subsequently lost all those gains when the market declined by -50%? It’s essential that WazirX promptly provides evidence of their use of funds in this scenario.
— Justice for WazirX Users (@IndiasCrypto) August 12, 2024

According to the June 10, 2024 proof-of-reserve report, the total value of WazirX’s holdings was approximately $503.64 million or ₹4,203.88 crores. Unfortunately, a hack resulted in a loss of $230 million. Therefore, it is estimated that WazirX has around $273 million remaining (approximately ₹1,973.12 crores).

Participants expressed worries and proposed an idea suggesting the platform possibly used customer’s money for market investments, leading to significant losses when market adjustments occurred.

Based on conjecture, several investors are urging an investigation by the Central Bureau of Investigation (CBI) to reveal the actual financial status of WazirX, encompassing the precise amount of cryptocurrency that was stolen, the current assets, and the Indian Rupee (INR) holdings.

Legal Recourse: The Debate Between PIL and Direct Suit

The conversation shifted to exploring legal remedies for victims. Some community members proposed submitting a Public Interest Litigation (PIL), but others felt that this might not fit the criteria of the Indian judiciary. However, there was a general agreement on the idea of initiating a class action lawsuit, as it could offer a more effective and unified method to pursue justice.

As a seasoned legal professional with years of experience in the digital currency industry, I have seen my fair share of disputes and misunderstandings. In light of recent events involving WazirX and its CEO, Nischal Shetty, I have decided to take action. This week, I will be filing a Public Interest Litigation (PIL) in the High Court.
— Justice for WazirX Users (@IndiasCrypto) August 8, 2024

As an analyst, I must express that numerous participants perceive class action lawsuits as an arduous procedure due to its time-consuming nature and potential financial strain on users. Moreover, should WazirX encounter bankruptcy during this legal procession, users may find themselves in a lengthy wait before regaining access to their funds, as authorities might impound WazirX assets in the interim.

Call for Unity: Government Is Not Interested In Crypto

The incident underscores the importance of increased responsibility, not only from trading platforms, but also from regulatory entities.

One individual noted that the government has mostly ignored or overlooked the cryptocurrency sector, causing the community to take responsibility for their own protection in this area. In India, aside from a 30% tax rate, there are currently no established regulations or guidelines to guide crypto investors.

Additionally, the speaker emphasized the importance of uniting the Indian cryptocurrency community and partnering with global peers to address these concerns more efficiently in the time ahead.

It appears that the perspective among the impacted WazirX users is varied regarding what they anticipate from WazirX in terms of fund recovery. Some users insist on getting back their full funds, whereas others are content with receiving any amount.

Internal Turmoil and Leadership Concerns

As a seasoned observer of the cryptocurrency market, I have noticed that internal turmoil can often plague exchanges, and WazirX seems to be no exception. With Nischal Shetty, the founder, residing in Dubai, and employee uncertainty surrounding remaining funds, it appears that the company is experiencing some instability. From my experience, such situations can have a significant impact on an exchange’s reputation and long-term success. It will be interesting to see how WazirX navigates these challenges and maintains trust with its users.

The community voiced a desire for an examination into whether their resources were improperly used, and if so, to ensure those responsible are held liable for their actions.

Lack of Responsiveness and Transparency: A Growing Concern

The conversation within the community kicked off, accusing the WazirX team of being less communicative since they began operations. Members of the cryptocurrency community expressed their dissatisfaction due to WazirX’s perceived unresponsiveness following the $235 million hack incident.

Users and the platform’s host have emphasized that Indian cryptocurrency exchange WazirX has failed to respond, leaving its users in a state of uncertainty. This lack of communication has sparked worries within the Indian crypto community, especially about the difficulty in withdrawing their funds. The silence from WazirX has added to these concerns and unease among affected users, raising questions about the exchange’s dedication to openness and user security.

Conclusion

WazirX’s owners have not yet proposed a plan to reimburse investors nor given a timeline for when users can retrieve their funds, causing concern among investors that they may never get their money back. What adds to their distress is the lack of communication from the exchange owners, who previously presented a promising image.

2024-08-12 15:33