In the wake of the recent security breach at WazirX, where $234.9 million was drained from the exchange’s wallet, a disturbing blame game has unfolded.
Blame Game
WazirX is pointing fingers at Liminal, a third-party service provider or partner associated with WazirX, while Liminal counters by blaming WazirX. Amidst this back-and-forth, the real victims are the users, many of whom may never recover their full funds.
This incident is a stark reminder of the lack of accountability in India’s cryptocurrency sector. Previous hacks, such as the Buyucoin breach, where people saw the exchange deny any issue even when evidence of compromised user data was clear. Similarly, when popular Indian digital Neo banking firm Mobikwik’s data was available on the internet following a hack, the company also denied the breach.
Vauld, another crypto exchange, misled its users about its exposure to the collapsed Terra(Luna) cryptocurrency, further eroding trust in the industry. These incidents highlight a troubling pattern where Indian crypto exchanges refuse to take responsibility, leaving users vulnerable and unsupported.
As the WazirX situation continues to unfold, it underscores the urgent need for stricter regulations and better security practices in the Indian cryptocurrency market to protect users and ensure transparency and accountability. Otherwise in the long run, Indian crypto traders will step away from Indian exchanges.
Nischal Shetty on Hack incident
However, the WazirX legal team has filed a complaint and taken legal action. They are also in contact with other crypto exchanges to track the hacker and recover the funds, but so far, they have not reached any conclusion or decision on how to tackle this situation.
On this incident, WazirX CEO Nischal Shetty said that he is unable to eat or sleep properly but is still tirelessly working to solve this critical situation.
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