Nischal Shetty, the CEO and co-founder of WazirX, recently addressed the allegations of fund mismanagement that have been circulating. The popular Indian crypto exchange faced a hacking incident four months ago, resulting in the loss of nearly 50% of its customers’ funds. Despite this setback, the WazirX team is now on a path of restructuring to compensate its customers.
Shetty clarified that the WazirX team has never attempted to conceal any information regarding the management of customers’ funds. He explained that the recent bull run in the market has actually supported the situation by increasing the valuation of the remaining assets held by the exchange. This increase in trade prices has helped to maintain the value of the holding crypto assets, despite the hacking incident.
However, some WazirX customers have raised concerns about the exchange’s compensation process. Many have questioned why they are being given equivalent stablecoin instead of cryptocurrencies, which ultimately reduces the actual compensation amount to only 20 to 25% of what was initially promised. In response to these concerns, popular Indian crypto influencer Pushpendra Singh has urged the WazirX leadership to return all crypto assets to customers at the current market price, which would effectively double the compensation amount.
Singh emphasized that any delay in the fund release process could negatively impact WazirX customers, especially during the current bullish phase in the market. He called on WazirX to fulfill its promise of providing 50% of the funds back in crypto assets to ensure that customers are adequately compensated.
As the situation continues to unfold, it is clear that WazirX is under pressure to address the concerns of its customers and ensure a fair and transparent compensation process. The exchange’s response to these challenges will be crucial in determining its reputation and future success in the crypto market.