The recent $235 million hack at WazirX has raised concerns not only about the security of the exchange but also about its ownership structure. The ongoing dispute between WazirX and Binance, concerning an acquisition offer made in 2019, has led to significant confusion regarding who actually controls the exchange. Despite Binance’s former CEO claiming that the acquisition was never completed, Shetty insists that Binance still holds key operational aspects of WazirX, such as its domain name and servers. This lack of clarity surrounding ownership has put pressure on WazirX to come clean and restore user confidence.
In response to the hack and the ownership dispute, WazirX has introduced some changes to address the situation. For instance, they have implemented a phased withdrawal system for Indian Rupees, allowing users to access up to half of their funds. Additionally, withdrawal fees have been reduced by 60% to make it easier for users to retrieve their money. However, the details of the restructuring plan initiated by WazirX remain shrouded in mystery, with the exchange citing interference from external parties as a hindrance. This lack of transparency only adds to the skepticism surrounding the exchange’s operations.
Shetty has emphasized that the safety and well-being of users are his top priorities. He has urged users to withdraw their funds from the platform for the time being, especially their INR balances, which have been partially frozen due to the hack. Shetty has also acknowledged that the timeline for crypto withdrawals remains uncertain, further adding to the frustration of users who are eager to retrieve their assets. The lack of clarity and assurance from WazirX regarding the safety of users’ funds only serves to exacerbate the already tense situation.
Security Concerns and Allegations
The security breach that occurred in July, resulting in the loss of $235 million, has raised serious questions about WazirX’s ability to protect users’ funds. The hack, allegedly linked to North Korean cyber actors, targeted one of WazirX’s wallets, leading to the unauthorized transfer of funds. While WazirX has taken steps to address the incident by publishing a preliminary report and filing a police complaint, doubts persist about the exchange’s security measures. Liminal, a third-party firm, has disputed WazirX’s claims, suggesting that the compromised wallet was created independently by WazirX before being imported into their platform.
WazirX’s response to the recent hack and ownership dispute has been met with skepticism and uncertainty. The lack of transparency, coupled with ongoing security concerns, has eroded trust in the exchange and its ability to safeguard users’ funds. It is imperative for WazirX to provide clear and concise information about the situation, address the ownership dispute with Binance, and implement robust security measures to prevent future breaches. Only through open communication and proactive steps can WazirX hope to regain the trust and confidence of its users.
