• WazirX faces investor backlash post-$230M hack, CEO Shetty seeks time for solutions.

  • Investors demand updates as WazirX struggles with communication and recovery post-hack.

  • WazirX looks to Binance for customer compensation amid legal disputes and recovery challenges.

Indian cryptocurrency exchange WazirX continues to grapple with investor scrutiny following a security attack that resulted in the loss of over $230 million in crypto assets. The CEO, Nischal Shetty, addressed the situation on his X (formerly Twitter) account, assuring investors that the team is actively working on solutions and requesting more time to resolve the issues.

We’re working on solutions. Need more time, we’ll continue to provide updates. Working on some tangible updates soon. Please don’t panic and give us time to sort this out 🙏 https://t.co/4Dtof5SJ1D

— Nischal (Shardeum) 🔼 (@NischalShetty) August 5, 2024

The lack of detailed updates is what has fueled the frustration among the platform’s users. Ajay Kashyap, an investor, expressed his worries on X, highlighting the 19 days that have passed since the hack with no substantial updates. Kashyap questioned the actions taken by Shetty and WazirX India and inquired about the resumption of withdrawals for the remaining funds.

It's been 19 days since #Wazirx Hack!Still no update on basic details by @NischalShetty and @WazirXIndiaWhat are you guys are doing ?By when exchange will open withdrawals for remaining funds ? pic.twitter.com/Z0SY6pgB70

— Ajay Kashyap (@EverythingAjay) August 5, 2024

Another investor, Dev Gupta, criticized the lack of communication, noting that Shetty had not posted any updates for almost two days. Gupta emphasized that a responsible leader would reassure users during such a crisis, expressing disappointment in the perceived silence from WazirX’s leadership.

In response to the backlash, WazirX has reached out to its former partner, Binance, for help in compensating affected customers. This move follows the controversial “55/45 approach” recovery plan proposed by WazirX, which faced significant opposition.

However, the relationship between Binance and WazirX remains bruised, with ongoing legal battles hindering negotiations. Sources indicate that discussions are still in the early stages, and no actual proposals have been confirmed. 

The attack on WazirX led to the temporary suspension of Indian Rupee (INR) and crypto asset withdrawals on WazirX. The hacker reportedly used Tornado Cash, an open-source privacy tool, to transfer the stolen assets before converting them to Ethereum (ETH).

The Cyvers Alerts team attempted to contact WazirX regarding the incident but received no response, further driving investor concerns about the transparency and reliability of the exchange’s response.

For want of timely and regular updates, the pressure on WazirX to provide a satisfactory resolution and restore trust is continuing to mount.

The post WazirX $230M Hack Fallout: Investors Demand Transparency appeared first on Coin Edition.