WazirX, a prominent crypto exchange in the Indian market, recently concluded its 10-day vote event for its Exchange Recovery Scheme on 28 March 2025. The scheme was implemented following a hack attack in mid-2024 that resulted in the loss of $230 million worth of cryptocurrencies. The exchange had suspended its services for five days post the incident.
The voting process, aimed at restructuring the exchange and returning funds to customers, has sparked controversy. Several crypto influencers have accused WazirX of paying influencers to promote positive responses regarding the exchange’s developments. Pushpendra Singh Kushwaha, a well-known Indian crypto influencer, claimed that many influencers were speaking in favor of WazirX due to monetary incentives offered by the exchange. He further revealed that he had declined a paid promotion offer from WazirX to support the creditors affected by the hack.
While the majority of users have shown support for WazirX, there have been concerns raised about the transparency of the exchange’s actions. Some users have reported being blocked by WazirX CEO for asking probing questions about the restructuring scheme. Despite these challenges, the exchange has maintained that an independent third-party team will verify the vote results to ensure transparency and fairness in the process.
In a recent development, the National Consumer Disputes Redressal Commission (NCDRC) dismissed a lawsuit filed against WazirX by a creditor due to the absence of specific laws and regulations governing digital assets in India. NCDRC president Justice AP Sahi highlighted the need for legislative action to address claims related to crypto exchanges like WazirX and emphasized the involvement of regulatory bodies such as the Financial Intelligence Unit and the Indian Cyber Crime Coordination Centre.
As the crypto market continues to evolve, the WazirX case underscores the importance of regulatory clarity and consumer protection in the digital asset space. Investors and users are advised to exercise caution and seek professional financial advice before engaging in cryptocurrency transactions.