Nischal Shetty, the CEO and co-founder of WazirX, recently addressed concerns regarding the handling of customer funds in the wake of a hacking incident that occurred four months ago. Despite losing nearly 50% of its customers’ funds, Shetty clarified that the WazirX team never attempted to conceal any information related to money management. Instead, he attributed the valuation of holding funds to the market’s bull run, which supported the situation by increasing the trade price of remaining assets.
Currently, WazirX is undergoing a restructuring process to compensate customers for their losses. The company is working on launching a new decentralized finance (Defi) exchange and introducing a new token to boost revenue. However, the progress of this restructuring process has not been publicly disclosed.
In response to allegations of fund mismanagement, Shetty explained that the value of the holding crypto assets was maintained despite the hacking incident, thanks to the rise in trade prices of the remaining assets. While some users acknowledged this explanation, others raised concerns about the compensation process. Many customers questioned why WazirX was providing equivalent stablecoin instead of returning cryptocurrencies, resulting in a lower compensation amount than initially promised.
Pushpendra Singh, a prominent Indian crypto influencer, called on WazirX to return all crypto assets to customers at the current market price, which is significantly higher than the stablecoin equivalent. Singh emphasized that delaying the fund release process could negatively impact customers, particularly during a bullish market phase when selling assets is crucial.
In conclusion, the WazirX team’s response to fund mismanagement allegations has sparked mixed reactions among users and influencers. While some appreciate the explanation provided by Shetty, others are urging for a more transparent and fair compensation process. As the company continues its restructuring efforts, it remains to be seen how WazirX will address these concerns and regain the trust of its customers.