WazirX Users Demand ED Probe, Seek Nirmala’s Attention

As a seasoned researcher with years of experience in the field of digital finance and cybersecurity, I find myself deeply concerned about the recent allegations surrounding WazirX and its co-founder, Nischal Shetty. Having closely followed the evolution of cryptocurrency regulation in India, it is evident that this incident could significantly impact the nation’s stance towards the digital asset industry.


Recently, a team of advocates submitted a petition to Finance Minister Nirmala Sitharaman, urging for a comprehensive investigation by the Enforcement Directorate (ED) regarding India’s largest cryptocurrency hack worth more than 2000 crores (Rs 2000 crore).

In a letter directed to Finance Minister Nirmala Sitharaman, the disgruntled users have implicated Nischal Shetty, co-founder of WazirX, and his associates for allegedly carrying out an “insider scam” by exploiting a cyber breach on July 18, which led to a 45% loss in user assets.

Dear Hon’ble Finance Minister, Ms. Nirmala Sitharaman,

— eVAKEEL (@evakeel24) September 10, 2024

Users on WazirX have requested a thorough investigation by both the Indian government and the Enforcement Directorate, believing that Shetty and his team are accountable for the security lapse and mishandling of this situation. They’ve also penned a letter to Chief Justice DY Chandrachud, seeking his intervention in resolving this case.

Users assert in their grievance that the administration of the “cold wallet” for the exchange is solely overseen by Shetty and those linked to WazirX.

The complaint also highlighted the attempt by Shetty’s team to impose Singaporean legal frameworks on Indian users, claiming it undermines Indian law, as an overwhelming majority of WazirX users are Indian citizens.

From a crypto investor’s perspective, the call for an Enforcement Directorate (ED) investigation brings an additional layer of complexity to India’s ongoing crypto regulatory landscape. As the Finance Ministry, led by Nirmala Sitharaman, imposes a 30% tax and 1% TDS on cryptocurrency profits, they must pay heed to instances like these where billions of rupees (over Rs 2000 crore) are potentially involved.

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2024-09-10 16:53