“WazirX abandoned investors, betrayal cuts deep”, Victims speak exclusively to Crypto Times

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As a long-time investor and follower of the crypto market, I have seen my fair share of ups and downs. However, the recent hack on WazirX has left me feeling disheartened and frustrated. Being a loyal customer since day one, I had always believed in the potential of this indigenous exchange, but now it seems like we are stuck in limbo with no end in sight.

Over two weeks since the identity of the culprits remains unknown following the hack on WazirX crypto exchange, which resulted in a loss of approximately $230 Million (Rs 2000 crore), investors are feeling disheartened and anxious because they can’t see a resolution to their predicament.

A multitude of investors, hailing from various age groups, numbering in the thousands, primarily reside in India. They made the decision to invest in the domestic exchange, WazirX, approximately four years ago. Currently, they find themselves in a state of uncertainty as WazirX has halted all operations and frozen their funds.

“From day one, I’ve been a devoted WazirX customer, sticking with them through tough times like their compliance problems with Binance and the Enforcement Directorate. But when I needed their help during the hacking incident, they failed to provide it. This feeling of being let down is very painful for me, and now I’m speaking up for all WazirX customers seeking justice,” said @indiascrypto, a vocal Twitter user who has taken on the role of advocating for WazirX customers.

In an exclusive conversation with The Crypto Times, an investor known as @indiascrypto (who prefers to stay anonymous) shared that approximately 750 investors of WazirX have reached out to him over the past fortnight. He initially received contact from around 90 investors, leading him to establish a Telegram group for supporting this cause. The group currently counts more than 750 disgruntled investors, all of whom are urging WazirX to swiftly release the unaffected 55% of their funds, according to @indiascrypto’s statement.

A look was granted at the private Telegram group where WazirX investors, ranging from students to retirees like Omprakash Chaudhary (age 64, hospitalized last Thursday), are strategizing next steps, hailing from diverse age groups and economic backgrounds across India.

According to Ajay, his father invested 60 lakh rupees into WazirX and was subsequently admitted to the ICU due to a lack of recovery of his funds. On Friday evening, a video surfaced on social media showing Omprakash being taken to an Indian hospital’s ICU, with Ajay requesting the return of the funds.

🚨 Urgent message from your tribe: A warning has been sent by Mr. Nischal Shetty. This is being shared on platforms like BuddhaSource, Shardeum, CryptooAdy, Pushpendra Kumar, SimplyKashif, Crypto_Jargon, and CryptoAmanClub. The hashtag #JusticeForWazirXUsers is also being used in connection with this matter. This update can also be found on VJ_CryptoTimes.

— Justice for WazirX Users (@IndiasCrypto) August 9, 2024

“Ajay, an investor on platform X, shared a video that became widely popular, even catching the attention of notable crypto influencers. Yet, neither Nischal Shetty nor WazirX have reacted to it. From day one, they’ve seemed to delay a response, and after 22 days, our patience is wearing thin. It’s starting to appear that this isn’t a hack but a scam,” Ajay expressed his concerns.

As a concerned crypto investor, I’ve joined forces with numerous other fellow investors in the WazirX community, expressing our collective concern about the delayed release of approximately 55% of our untouched funds.

As a crypto investor, I poured in 6.5 lakhs at WazirXIndia, and if I don’t get a return on my investment, I might consider giving up. I worked hard to accumulate this amount over the past three years, waiting for the bull run. I really want my money back, @NischalShetty.

— Rahim khan (@Rahim8753khan) August 8, 2024

On July 18th, I found myself in an unexpected predicament as unknown cybercriminals managed to pilfer approximately 45% of our stored cryptocurrencies from WazirX exchange, following a successful intrusion into our multi-signature wallet. Consequently, we were compelled to temporarily suspend all platform operations and thwart any withdrawal attempts by our investors regarding the remaining 55% funds.

WazirX assured all users that they will reinstate everyone’s portfolios, yet they didn’t provide specific timelines for when users can withdraw their money. Moreover, the exchange stated that they have lodged a police complaint with the Delhi Police 20 days after the security incident.

Nischal Shetty and Siddharth Menon, the co-founders of WazirX, along with their families, relocated to Dubai two years ago and changed their operational base from India to the Middle East. The reality that these two are now living outside Indian territory, beyond the reach of Indian authorities, is causing concern among investors.

“It seems to me that @indiascrypto suspects WazirX and Nischal Shetty are intentionally prolonging matters by offering reassurances of 55% fund recovery, potentially misleading users. Given that Nischal is located in Dubai, they advocate for a comprehensive, impartial investigation by the Dubai Police to ensure accountability. This isn’t merely about recovering funds; it’s about ensuring those who may have abused their position for personal profit are held responsible.”

Right now, WazirX is under investigation by the Indian National Company Law Tribunal (NCLT) due to accusations of poor management and questionable business practices. Additionally, some investors have warned they may take legal action in a higher court, potentially filing a Public Interest Litigation against the platform.

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2024-08-10 19:01