Following the recent $235 million hack, WazirX co-founder and CEO Nischal Shetty has addressed growing concerns about the exchange’s operations and ownership. Shetty revealed that he is managing the exchange on behalf of the owners amid an ongoing dispute. He emphasized that he cannot disclose specific details about trades or reversals due to confidentiality obligations.
The ownership dispute between WazirX and Binance traces back to an acquisition offer made by Binance in 2019. Despite claims by Binance’s former CEO that the acquisition was never finalized, Shetty asserts that Binance maintains control over key operational aspects of WazirX. The lack of clarity surrounding the ownership structure has added to the uncertainty surrounding the exchange.
In light of the hack and ownership dispute, WazirX has faced mounting pressure to address security concerns and restore user confidence. The introduction of a phased withdrawal system for Indian Rupees and a reduction in withdrawal fees were among the initial steps taken by the exchange. However, the details of a restructuring plan announced by WazirX remain unclear, with external parties reportedly complicating the process.
Shetty has emphasized the importance of prioritizing user interests and has advised users to withdraw their funds from WazirX temporarily. Acknowledging the challenges posed by the asset freeze and security breach, Shetty highlighted the need for transparency in addressing the ongoing issues. He assured users that more information about the restructuring process would be provided in the coming week.
The asset freeze affecting a portion of WazirX’s funds has raised concerns about the timeline for crypto withdrawals. Shetty explained that the freeze extends to other Indian crypto exchanges as well, indicating a broader issue within the industry. The unresolved nature of the asset freeze has further complicated the exchange’s efforts to restore normal operations.
The $235 million hack, allegedly linked to North Korean cyber actors, targeted one of WazirX’s multi-signature wallets, resulting in the unauthorized transfer of funds. Although WazirX has published a preliminary incident report and filed a police complaint, there are conflicting claims about the source of the breach. The exchange continues to work towards addressing the security implications of the hack.
The recent events surrounding WazirX highlight the challenges faced by cryptocurrency exchanges in maintaining security and transparency. The ownership dispute with Binance, coupled with the security breach and subsequent asset freeze, underscore the importance of robust risk management practices in the industry. Moving forward, clear communication, proactive measures, and collaboration with regulatory authorities will be essential for WazirX and other exchanges to rebuild trust among users and stakeholders.
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