WazirX, a prominent cryptocurrency trading exchange in India, recently faced a hacking incident that resulted in the loss of nearly half of its customers’ funds. Following the cyber attack, the exchange suspended all crypto services and is currently seeking regulatory approval to resume operations with a revised approach.
In response to the DMM Bitcoin hack incident, WazirX CEO Nischal Shetty shared an FBI report confirming that the hackers targeted a third-party wallet provider’s system. This revelation indirectly hinted that WazirX also experienced a similar situation where hackers exploited a third-party crypto wallet custody service provider, yet the blame fell solely on the exchange.
Despite this explanation, WazirX customers expressed discontent with the handling of the situation. Many users are eagerly awaiting the return of their funds and urged Nischal to expedite the process. In response, Nischal stated that the distribution of funds would depend on the creditors’ support for the restructuring scheme. If all WazirX creditors endorse the plan, the exchange can proceed with the scheme.
The proposed WazirX platform restructuring scheme initially garnered support from the majority of stakeholders. However, some crypto influencers raised concerns that the exchange’s motives were self-serving rather than in the customers’ best interests. Dubbed a “scam” by some customers, the scheme has sparked controversy within the cryptocurrency community.
As the situation unfolds, the focus remains on resolving the issues faced by both WazirX and its customers. The exchange’s ability to restore trust and return funds to its users will be pivotal in determining its future success. Stay tuned for updates on this developing story.
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