WazirX Exchange is Breaking Spines of Indian Middle-Class Amid Withdrawal Delays

NAIROBI (CoinChapter.com)— The crisis at WazirX exchange shows no signs of abating, as middle-class investors continue to face uncertainty following the July 18 hack that resulted in a loss of $234 million.

Although the exchange completed scheduled maintenance on Aug. 16, enabling users to view their balances, the ongoing delay in withdrawals has only intensified frustration and concern among its users.

Nischal Shetty, the founder of WazirX, acknowledged the challenges, stating that the team is exploring various ways to restore platform functionality, including deposits, withdrawals, and trading. Despite these efforts, confidence remains low among investors.

Withdrawal Delays Fuel Investor Desperation

WazirX’s failure to provide a clear timeline for withdrawing funds has created an atmosphere of anxiety and frustration among its users. The inability to access their funds is a crushing blow for many middle-class investors, who often have limited financial cushions.

The crisis has been exacerbated by WazirX’s initial proposal of a 55/45 loss-sharing model, which was widely criticized as unfair and has only deepened the sense of betrayal felt by investors.

Pintu Yadav, a delivery worker and office employee, exemplifies the struggles many face. He shared his frustration online, expressing that 32 days had passed without any clear update on withdrawing the remaining 55% of their funds.

His situation underscores the broader impact on individuals who rely on their savings and investments to support their families. They are left with diminishing hope as WazirX delays clear communication and resolution.

Ajinkya Kawale highlighted the limited legal options for action against WazirX exchange, noting that disputes must be resolved in Singapore. He also pointed out that a class action suit is not possible. Another user, I’m_Jawed, demanded clear answers, urging WazirX to provide a timeline for releasing the remaining 55% of funds.

WazirX’s Response and Questions About Accountability

WazirX responded to the hack by hiring Mandiant, a Google subsidiary, to conduct a forensic analysis. The exchange claimed the analysis showed no compromise, with their laptops remaining secure. Despite this, Indian crypto exchange questioned Liminal Custody, the third-party custodian, raising unanswered concerns about the breach on Liminal’s side.

Nischal Shetty, CEO of WazirX, stated their systems followed industry best practices. He is still waiting for credible answers from Liminal about the breach and potential insider involvement. Shetty emphasized the Mandiant report should clear the exchange of any wrongdoing.

Despite these claims, WazirX has not provided a clear timeline for users to withdraw their funds. This lack of transparency has fueled distrust among its users, leaving them uncertain when to access their investments.

Coinchapter contacted Nischal Shetty for further comments but has not received any response.

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