The WazirX Security Breach: A Timeline of Events
On July 18, 2024, WazirX, India’s largest cryptocurrency exchange, experienced a significant security breach that led to the loss of $230 million in user funds. The news of the hack quickly spread, prompting the exchange to halt all withdrawals and seek assistance from various authorities and experts in the field.
Despite these efforts, users affected by the breach expressed their dissatisfaction with the lack of communication and transparency from WazirX CEO Nischal Shetty, intensifying their concerns and frustrations.
Concerns and Criticisms Surrounding the Response
As days passed without any concrete updates or plans for compensation, the anxiety among victims continued to grow. Social media backlash and public outrage further fueled the criticism towards the exchange.
Many users highlighted the connection between Mahin Gupta, the founder of Liminal Custody, and Nischal Shetty through another business venture, raising suspicions of insider involvement in the hack. The blame placed on the compromised multi-signature wallet added to the skepticism surrounding the incident.
Calls for Accountability and Justice
Amidst the growing discontent, affected investors united on social media platforms, demanding accountability and compensation. Discussions about the need for a forensic report conducted by an external auditor gained traction, emphasizing the importance of transparency and clarity in the situation.
The community also explored legal avenues, with many advocating for public interest litigation to hold WazirX’s leadership, Liminal regulators, and government entities accountable for their roles in the breach.
The handling of the WazirX hack not only impacts the trust of Indian cryptocurrency users but also sets a precedent for how such incidents are managed in the future.
