💸WazirX CEO questions the transfer of $75 million in crypto assets, does the community buy it? 🚨
WazirX's CEO Nischal Shetty recently found himself in the midst of community criticism, as he needs to explain why their company transferred $75 million worth of crypto assets to two major exchanges, Bybit and KuCoin, without user knowledge. This incident has caused quite a stir in the Indian cryptocurrency community.
🔎 The event occurred after WazirX suffered a hacking incident and disclosed 240,000 wallet addresses. A Singapore court has ordered the platform to suspend related operations and undergo a four-month rectification period to ensure the issue is properly addressed.
The trigger for this incident was when CoinSwitch's CEO Ashish Singhal exposed on social media that his team discovered WazirX transferred a large amount of cryptocurrency following the hacking attack. He mentioned that they are particularly concerned about this matter as they hold Indian Rupees and virtual digital assets (VDA) in WazirX. He also stated that after WazirX halted trading, CoinSwitch had to use its own funds to compensate clients, and now they are taking legal action to recover the money lost to hackers.
However, Shetty quickly responded on social media, stating that these accusations are “false statements” and denied any “secret” fund transfers. He explained that WazirX parted ways with Liminal after the attack in July, and transferring assets to exchanges was part of finding a new custodian, which is a legal process.
He also indicated that due to the complexity of custody, not all custodial providers support certain tokens, so some crypto assets were temporarily transferred to Bybit and KuCoin, while WazirX is seeking better custody solutions.
Notably, despite WazirX offering a $23 million bounty and seeking assistance from forensic experts and law enforcement, they have yet to recover any of the funds stolen during the July attack. It appears that this money may be irretrievable, as hackers reportedly linked to North Korea have laundered almost all of the ill-gotten gains.
🤔 What do you think? Do you find WazirX's explanation reasonable, or do you sense something fishy? Let's discuss this drama in the cryptocurrency community together!
