Nischal Shetty, the CEO of the once-popular crypto trading exchange WazirX, is now feeling optimistic as authorities in South Korea, Japan, and the USA have announced efforts to recover the hacked funds.
WazirX, which was a subsidiary of Binance, faced a hacking incident in July 2024, resulting in the loss of 45% of customers’ funds and the suspension of its services. The exchange is currently embroiled in a dispute with Binance in a Singapore court. The leadership of WazirX is now seeking regulatory approval and support from customers to restart the exchange under compliance.
In a recent development, the United States, Japan, and South Korea issued a joint statement addressing cryptocurrency thefts by hackers linked to the Democratic People’s Republic of Korea (DPRK), including the Lazarus Group. These hackers have been using stolen funds to finance weapons programs, with major theft attacks totaling over $600 million last year. The joint statement emphasizes efforts to recover stolen funds and prevent future attacks through public-private collaboration and stronger cybersecurity measures.
Nischal Shetty noted that the joint statement also mentioned the WazirX cyber incident, in which the exchange lost $235 million worth of cryptocurrencies. He expressed hope for the success of the joint operation against these hackers so that the WazirX team can return the funds to customers.
Despite facing criticism from WazirX customers, Nischal is working towards restarting the exchange’s services. Due to legal constraints, WazirX cannot release funds back to customers without proper procedures, leading some to label him as a scammer. However, Nischal remains committed to resolving the situation and ensuring the return of funds to customers.
As the situation unfolds, Nischal Shetty and the WazirX team are navigating challenges and working towards a resolution in collaboration with regulatory authorities and customers. The hope is that with continued efforts and support, WazirX can overcome this setback and regain the trust of its users.