Key Takeaways:
- WazirX investors threaten suicide as funds remain locked after July hack.
- WazirX blames security partner for breach; no withdrawal timeline provided.
- Lack of regulation leaves Indian investors vulnerable to massive financial losses.
LUCKNOW (CoinChapter.com) – The WazirX cryptocurrency exchange controversy continues to escalate, as thousands of investors are now threatening dire actions, including suicide, if their locked funds are not released soon. The crisis began on July 18th, when a hack resulted in the loss of 45% of investor funds on the WazirX platform. In the aftermath, the exchange has locked the remaining funds and halted all withdrawal operations, leaving customers unable to access their money.
Investors Demand Immediate Action
For over a month, WazirX investors have demanded the release of their locked funds. However, with no resolution in sight, many are resorting to drastic measures. Distressed investors are sharing their plight on Social media platforms like X. One investor shared an audio clip, threatening suicide if his Rs 5 lakh (about $6,000) is not returned within 10 days.
Another WazirX user from Mizoram, India, released a video sharing his struggle. He had to sell his motorcycle to cover medical bills after losing his savings in the exchange. “Nischal, it’s been over 34 days,” the investor pleaded, addressing WazirX co-founder Nischal Shetty. “I sold my vehicle to pay medical bills. Now, I might have to sell my parents’ property.”
WazirX Playing Blame Game
Despite growing investor unrest, WazirX has yet to offer a solution. On August 19, the exchange blamed its former security partner, Liminal Custody, for the breach of their multi-signature (multi-sig) wallet. This breach led to the loss of 45% of investor funds. Liminal Custody denied the allegations and called for an impartial forensic audit.
Nischal Shetty took to X, asking why no one warned him about the risks of storing large funds in one wallet. While WazirX claims to have restored customer balances, there is still no timeline for resuming withdrawals. Investors remain in limbo, uncertain about the future.
With no clear path to recovery, WazirX investors grow increasingly anxious. The Reserve Bank of India does not regulate cryptocurrency, leaving the Rs 2,000 crores ($250 million) hack largely unaddressed. Indian politicians and authorities have remained silent.
