It has been nearly 25 days since the WazirX fiasco- India’s largest cryptocurrency hack resulting in a staggering loss of Rs 2000 crore of investors- yet there is a pall of silence from both the exchange and Indian authorities.
Desperate, anxious and with no recourse available, thousands of WazirX hack victims have now turned to social media to unite their voice in demand for justice and timely compensation.
On Sunday, thousands of investors of WazirX assembled on ‘X’ (formerly Twitter) to host a space to discuss their future course of actions. The space discussion was organized by @Indiascrypto, an anonymous Twitter account created to unite the victims of the WazirX hack.
The Crypto Times team has been extensively covering the voices of various investors of WazirX hack and was part of the Sunday discussion on X. In this exclusive report, we break down the five major points of discussion during the session that interested the investors.
Suspicion Over WazirX’s Hazy Financial Status
According to several investors, right after the hack, the WazirX team disabled the access of proof-of-reserve on CoinGabbar- a news platform dedicated to crypto spaces.
The disabling of proof-of-reserve features on the WazirX post-hack has raised skepticism about the platform’s financial health as the platform promised to return 55% funds.
As per the latest proof-of-reserve report of June 10, 2024, WazirX’s total holdings were $503.64 million (₹4,203.88 crores). After losing $230 million in the hack, WazirX’s remaining funds must be $273 million (₹1,973.12 crores).
Speakers raised concerns and put a theory forward that the exchange might have invested users’ funds in the market, which resulted in major losses during market corrections.
Keeping this in speculation, various investors have raised demands for a CBI investigation to uncover the true state of WazirX’s finances, including the exact amount of stolen crypto, remaining assets, and INR holdings.
Legal Recourse: The Debate Between PIL and Direct Suit
The discussion then moved towards the legal option available for victims. While some community members suggested filing a Public Interest Litigation (PIL), others argued that it wouldn’t meet the Indian judiciary’s criteria. Instead, the consensus leaned towards pursuing a class action suit, which could provide a more viable and collective approach to seeking justice.
However, many attendees are calling class action lawsuits a burdensome process as it is a time-consuming and puts a financial burden on users. Furthermore, If WazirX declares bankruptcy during this legal process, users will have to forget about their funds for a long time as legal authorities might seize WazirX holdings.
Call for Unity: Government Is Not Interested In Crypto
The hack has highlighted the need for greater accountability not just from exchanges but also from regulatory bodies.
One speaker pointed out that the government has largely “sidelined” the crypto industry, leaving the community to protect for itself. In India, apart from 30% taxes, there is no regulatory framework or guidelines available for crypto investors.
Furthermore, the speaker raised a strong call for unity within the Indian crypto community and the need to collaborate with international counterparts to tackle such issues more effectively in the future.
This statement comes as the affected WazirX users seem divided over their expectations from WazirX to recover funds. While some people want their 100% funds, while others are ok with whatever they get.
Internal Turmoil and Leadership Concerns
One of the speakers also highlighted the problem existing with the leadership and internal operations of WazirX. With Nischal Shetty, founder of WazirX, staying away from India in Dubai, and even WazirX employees uncertain about the remaining funds, the situation within the company seems unstable.
The community expressed the need to investigate whether their funds have been misused and to hold those in charge accountable.
Lack of Responsiveness and Transparency: A Growing Concern
The community discussion started with the allegation that the WazirX team hasn’t been so responsive since starting. The crypto community voiced its frustration over WazirX’s lack of responsiveness following the $235 million hack.
Speakers and the host highlighted how the Indian crypto exchange WazirX, has been unresponsive, leaving users in the dark. Such silence raised concerns in the Indian crypto community, particularly regarding the inability to withdraw their funds. The silence from WazirX has only fueled concerns and anxiety among affected users, questioning the platform’s commitment to transparency and user protection.
Conclusion
The owners of WazirX are yet to announce any compensation plan for the investors nor have they revealed when their customers can withdraw their funds. The fear is palpable among investors that they might never receive their funds back but what’s even more disheartening for them is the deafening silence of the exchange owners who once showed them the moon.
Also Read: “WazirX abandoned investors, betrayal cuts deep”, Victims speak exclusively to Crypto Times
