After thousands of investors of WazirX registered their protest on social media against alleged apathy from the cryptocurrency exchange post the biggest Indian crypto hack, the exchange finally released a statement on Tuesday but not with any concrete information.
Much to the disappointment of victim investors of this massive $230 Million (Rs 2000 crore), WazirX released a statement after five days of silence but it did not reveal any information regarding when investors can start withdrawing their funds.
As per the update, WazirX has claimed that they are still in the process of restoring the balance of trades between July 18 to July 22 and working with the legal team to formulate a plan to enable withdrawals of investor funds.
WazirX’s co-founder Nischal Shetty is under fire from angry investors of the exchange, who have demanded accountability from him and immediate release of investor funds. On his part, Shetty broke his silence after five days and only posted “These efforts take time, please bear with us as we navigate through this difficult period.”
Investors Raise Ethical Concerns on Shetty’s side ventures’ promotions
The recent turmoil surrounding WazirX, has sparked a wave of ethical scrutiny and public outrage. The controversy took a troubling turn as Shetty, while neglecting WazirX-related communication, was seen actively promoting his other ventures, Shardeum and Pi42Exchange, on X. The irony is not lost on the community: the very individual who should be addressing investor concerns and ensuring recompense is instead generating buzz for his new projects.
This situation has drawn criticism for perceived ethical lapses, especially when Shetty’s side ventures are flourishing while WazirX users are left in the lurch.
Adding to the complexity, Shetty’s involvement in the security measures of his other ventures has raised eyebrows. During the WazirX hack, which remains a significant blow to the crypto community, Shetty was concurrently running a $1 million bug bounty program for Shardeum.
This program, designed to identify vulnerabilities before its token launch, has been scrutinized for its timing and purpose. The coincidence of the hack and the bug bounty program, coupled with the $230 million liquidity required for Shardeum, has led to speculation that Shetty’s efforts may be a strategic maneuver to cover both his losses and investors’ anxieties.
This scenario echoes other troubling instances in the crypto world. For example, when Wintermute, another major player, was hacked for $160 million, the company swiftly moved to launch a new decentralized exchange (Dex) and token. Such patterns of behavior are disturbingly common in the industry, where crises are often followed by new ventures and token launches, creating a façade of progress while underlying issues remain unresolved.
Recent tweets have worsened these concerns. One user pointed out the “heights of hypocrisy” in the situation, noting that despite four days of silence from WazirZ, Shetty has managed to provide multiple updates on Shardeum within just a day.
Another X user, Ajay Chaudhary tweeted about his father, Omprakash Chaudhary (64), who was admitted to the ICU after losing ₹60 lakhs. He expressed his concern that Nischal Shetty and WazirX might be indirectly encouraging users to harm themselves and warned that similar risks could be facing Pi42 Exchange and shardeum users.
Conclusion
The WazirX saga underscores a broader issue within the cryptocurrency industry: the lack of accountability and transparency. As crypto ventures continue to evolve and new projects emerge, industry leaders must prioritize ethical conduct and address investor concerns promptly. Until such accountability is established, the cycle of crisis and opportunism is likely to persist, undermining trust and stability in the crypto space.
Also Read: WazirX Hack Mystery Deepens: The Pi42 link of Liminal’s Gupta & WazirX
