A group of aggrieved customers has called for a Central Bureau of Investigation inquiry following the massive WazirX hacking of $234.9 million from its multi-sig wallet. A wave of discontent surged among users of WazirX, India’s largest cryptocurrency exchange. This is over suspicion of possible insider involvement. WazirX and co-founder Nischal Shetty also demand accountability.
Unsatisfied with WazirX’s response following the hack, the users have also contacted the DCP South Zone of the Delhi Police. The users reported that what the platform announced recently is not fair and adequate; this is to the effect that customers would bear 40% of losses before any recovery or compensation process begins.
A Call for CBI Investigation
“CBI inquiry is imperative to determine whether this #WazirX incident was a hack or an insider job. If it turns out to be a hack, I may offer my support. However, uncovering the truth is my priority. and I am committed to pursuing justice relentlessly, even if…,” tweeted Justice for WazirX Users on July 28, 2024.
This appeal for a CBI probe is snowballing into a campaign in which the platform users seek an in-depth investigation into the WazirX hacking. The petitioners believe that only a detailed investigation by a respected body like the CBI can reveal the truth about the attack and subsequently bring any wrongdoers to book.
The platform’s reply has been criticized heavily. Amidst the claims made, instead of bearing 100% loss, WazirX has only released 55% of lost user funds, and the users will bear the rest. This created quite a stir in the community. Many believe that WazirX should pay the difference in the users’ funds from its reserve.
Manipulative Practices and Insider Trading Allegations
The users, in their petition, have raised several critical issues. One of the major concerns is that WazirX has indulged in manipulative and unfair practices. This platform stands accused of running misleading polls, unknowingly leading users to waive their legal claims and agree to unfavourable terms.
Insider trading allegations have also been put forward. It is believed that WazirX insiders converted their crypto assets to INR post-hack, avoiding losses and putting themselves in a vantage position. This unethical behaviour is a sellout of customer trust and warrants an immediate investigation.
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Even after the WazirX hacking, the platform continued to accept deposits in INR, misleading the investors that they could benefit from the dip in the market. These deposits are locked, too, further aggravating the financial stress of users who believe they are making prudent investments.
To add to the users’ woes, WazirX plans to convert 45% of user assets to USDT, creating potential tax liabilities for which clear guidance does not exist for who will bear such costs. This would be an added financial cost to users already hit by the forced conversion.
Demand for Justice After WazirX Hacking.
WazirX users collectively demand the reopening of a comprehensive criminal investigation into WazirX’s actions and the dispensation of justice to all its affected users. They want accountability from WazirX and Mr Shetty, which includes fair compensation for the losses caused to them.
The incident has once again brought to the surface chinks in digital currency exchanges and magnified the need for transparent, accountable, and user-safe operations in this new and fast-evolving world of digital finance. With the cry for a CBI probe in this matter snowballing, the cryptocurrency community is waiting with bated breath, hoping for an outcome consistent with letting this industry expand under a canopy of trust and credibility.
The Path to Justice and Accountability
The larger cryptocurrency community is now watching with bated breath as demand for a CBI inquiry into the WazirX hacking gathers momentum. The case once again stresses the need for more effective regulatory oversight and protection of users in this fast-developing space of digital finance. How this investigation ends up will likely set a precedent in handling such cases in the future while protecting user confidence and market integrity. Tune in to The BIT Journal for more blockchain and crypto community updates.
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