The Indian crypto exchange, WazirX, is currently facing significant backlash from the community following a hack that occurred in July 2024, resulting in the theft of around $230 million from a multisignature wallet. While the security breach raised serious concerns about the exchange’s security measures, the handling of the aftermath has also sparked fresh worries among users.
Many Indian crypto traders are eagerly awaiting a comprehensive response from WazirX regarding a range of important questions, as the exchange has halted withdrawals, leaving users unable to access their funds. To address these concerns and rebuild trust, co-founder Nischal Shetty and the exchange must address 15 critical questions posed by the community.
The first set of questions focuses on the details of the hack and the accuracy of WazirX’s reporting, including discrepancies in the reported percentage of hacked funds and adjustments to the total crypto holdings. Additionally, questions are raised about the allocation of funds for legal expenses and the compensation strategy for affected users.
Furthermore, concerns about post-hack operations and user treatment are highlighted, with inquiries regarding frozen funds, potential benefits from price increases, and calls for transparency through the publication of financials by WazirX’s parent company, Zattai.
Transparency and communication with users are also key areas of concern, with questions regarding the tracking of crypto holdings, updates to terms and conditions, and the disabling of comments on official accounts. Users are seeking clarity on the exchange’s plan for returning funds to those who deposited after the hack and questioning the lack of compensation from the profits generated by the company.
Failure to address these critical issues may only further escalate user frustration and damage the reputation of the exchange within the Indian crypto trading community. Answering these questions will be crucial for WazirX to regain trust and rebuild a positive relationship with its users.
