Popular Indian crypto influencer Aditya Singh has raised concerns about the unethical handling of funds by WazirX, pointing out that the exchange is reportedly holding a significant amount of customer funds deposited after its recent hacking incident. Singh’s statement has fueled further scrutiny into WazirX’s transparency and approach to customer fund security.
WazirX, a once-prominent Singapore-based crypto exchange, experienced a massive security breach three and a half months ago, where its cold wallet was hacked, resulting in the loss of over 50% of customer funds. Despite this, WazirX continued to offer trading services for 3 days, though reportedly without a 100% asset backing.
On 28 Oct 2024, Aditya Singh stated that WazirX not only froze 33% of customers’ fiat balances but also locked 100% of crypto assets deposited after the hacking incident, following a snapshot taken 1-2 hours after the breach.
Despite multiple statements from WazirX CEO Nischal Shetty, Singh argued that the issue remains unaddressed, suggesting customer funds appear to be of low priority for the team. This unresolved situation has stirred discontent and raised concerns over potential mismanagement or lack of proactive steps by the exchange.
WazirX Maintenance Sparks Further Criticism
Adding to the controversy, WazirX announced a maintenance upgrade, scheduled to last until 29 Oct 2024. The timing of the maintenance, right amid growing concerns, has only added to the unease among customers and critics alike.
Critics pointed out the timing of this maintenance, suggesting that the exchange’s scheduled activities are insensitive to its current challenges. Calls for more transparency and accountability continue to grow as customers seek assurance about the safety and future of their funds.
Read also: Cardano founder Criticises BlackRock BTC ETF, Highlights ‘Not Your Keys, Not Your Crypto’ Debate and Centralization Risks
