Ever since WazirX cryptocurrency exchange suffered, what is now India’s biggest crypto hack worth Rs 2000 crore, its co-founder Nischal Shetty has found new ways to shift blame for the mismanagement post the hacking incident.
For the past few days, Shetty has been on a blocking spree on ‘X’ (formerly Twitter) pushing the block button on any and everybody critical of the policies of WazirX regarding the recovery of user funds. Defending his actions, Shetty alleged that there is a conspiracy to derail the recovery and compensation process of the exchange.
He also claimed that several people with “no skin in the game” are trying to disrupt the prompt process with fake stories and narratives. WazirX has suspended all withdrawals from their exchange since July 18 when one of their multi-sig wallets was breached and 45% user funds were stolen.
Thousands of WazirX users have been protesting for the past one month, demanding immediate release of funds. For now, WazirX has allowed only 66% INR funds withdrawal in two phases and there are no immediate plans for 100% crypto funds of customers.
WazirX co-founder Nischal Shetty has also accused many crypto influencers and media organizations of trying to gain engagement out of the current tussle between users and management of WazirX. It is also pertinent to note that The Crypto Times has been at the forefront in raising voice of victim users of WazirX and as a result, our official X handle was blocked by Shetty on Saturday. The Crypto Times team wears it as a badge of honour and sees it as a testament to our commitment towards our readers.
After blocking a large number of crypto influencers and news media organizations on ‘X’, Shetty has now claimed that his exchange is working towards a concept of closed doors discussion on WazirX platform instead of social media platforms where everyone is free to put forth their opinions.
He also alleged that several fake accounts are targeting actual WazirX users, trying to dissuade them from solutions offered by WazirX.”If someone is supporting the prompt resolutions then these fake accounts are targeting and stating they are WazirX accounts which is not true at all. They’re trying to silence the smart voices who understand that this structuring is the right next step else there will be several years of delays (sic),” posted Shetty on ‘X’.
Whose Skin in the Game is Really?
In a series of tweets, Shetty alleged that several voices who don’t have any skin in the game are actively engaged in seeking support for users of WazirX who have been demanding release of their funds. It is worthwhile to note that the two co-founders of WazirX- Nischal Shetty and Siddharth Menon had shifted to Dubai from Mumbai in 2023. The exchange WazirX functions under Zanmai Private Labs company which is registered in Singapore.
As per the user agreement policy of WazirX, in case of any dispute, the users can approach Singapore International Arbitration Centre for relief only after 60 days. The exchange itself is approaching the judiciary in Singapore to find a solution for lost crypto funds of thousands of its users in India. As of now, WazirX doesn’t have an office space in India even though almost 100% of its users are from India itself. With such equations in place, it is crystal clear that it is only users of WazirX whose skin is actually in the game !
Here’s a list of people WazirX and Shetty have blamed after Hack
Hackers
Right after the hack on July 18, WazirX released a statement blaming unknown group of hackers for breaching their multi-sig wallet and stealing huge amounts of cryptocurrencies worth $230 Million that amounted to 45% user funds. The exchange has announced a bounty to track the hackers. There are unconfirmed reports that a group of North Korean Hackers ‘Lazarus’ are behind the hack but one cannot rule out the possibility of an insider job as well.
Liminal Custody
The erstwhile security partners of WazirX, Liminal Custody was entrusted with one of the keys of the multi-sig wallet that was breached on July 18. The WazirX had squarely blamed Liminal Custoday for the breach claiming that a forensic audit conducted on WazirX laptops showed no breaching incident. However, Liminal Custody has refuted the allegations put forth by WazirX and offered a third party impartial probe of their user interface and gadgets to determine the exact cause of breach.
Crypto Influencers and Users of WazirX
In a set of bizarre tweets, Nischal questioned popular crypto influencers and WazirX users as to why he was not warned earlier about the risks of storing 45% user funds in a single wallet. Nischal claimed that despite WazirX making its proof of reserve report public for the past year, no one approached him to tell him that it can be problematic to store such huge sums in a single wallet.
Noticeably, a three year old video of Nischal attending a podcast has gone viral where he can be heard chiding the anchor for trying to give him an advice. He further puts that he doesn’t need any advice and he can only accept feedback from the community.
Media
Nischal has now blamed media and popular influencers on Youtube and X for trying to raise the collective voice of WazirX users who have been demanding retrieval of their funds. The Crypto Times had earlier reported how several users are facing acute financial distress owing to their funds being suspended in the exchange. Many have also threatened to commit suicide if their demands are not met.
Conclusion: What Now for WazirX Users?
As per the recovery plan announced by WazirX, users can only withdraw 66% of their INR funds and there is no time limit on either remaining 34% INR funds or 100% crypto funds of every user. This socialistic plan of WazirX has not gone down too well with the users who are now threatening to file criminal cases against the owners of the exchange. The WazirX hack case that began on July 18 has now reached an ugly turn where the exchange is shifting blame on everyone except themselves while the users anxiously await their funds.
