Nischal Shetty, co-founder and CEO of WazirX, one of India’s leading cryptocurrency exchanges, has addressed concerns regarding the platform’s ownership and the ongoing operational challenges. In a recent Twitter exchange with prominent crypto influencer Pushpendra Singh, Shetty provided insights into the current state of WazirX, though he remained tight-lipped on certain specifics due to confidentiality obligations.
Shetty clarified that he is currently overseeing the exchange’s operations “on their behalf until the dispute gets resolved.” However, when pressed for details on how the exchange is functioning without apparent full administrative access, Shetty cited confidentiality as a reason for his inability to disclose further information. “I can’t get into any more particulars because of confidentiality obligations,” he said.
Founded in 2018, WazirX has grown to become a major player in India’s cryptocurrency market, with Shetty at the helm as CEO. The exchange reported over $400 million in trading volume in March, according to its bi-annual transparency report published in late April. Despite its prominence, WazirX does not share its market data with major independent crypto data aggregators like CoinMarketCap or CoinGecko.
Recently, WazirX introduced a phased withdrawal system for Indian Rupees (INR), allowing users to withdraw up to half of their available 66% INR balance limit. The exchange also reduced withdrawal fees from 25 INR to 10 INR per transaction. However, this withdrawal process was abruptly halted due to what Shetty described as “massive INR freezes,” a situation that has left many users frustrated.
Shetty explained that the inability to provide full access to user funds is due to a portion of assets being frozen, a problem he noted is not unique to WazirX but affects other Indian crypto exchanges as well. The exchange had recently reopened INR withdrawals for the first time since a significant security breach in July, where a presumed North Korea-linked hack resulted in a loss of $230 million.
In its latest report, WazirX pointed to its multi-factor wallet management service partner, Liminal, as partly responsible for the hack. The exchange claimed that “malicious transactions involved signatures from three WazirX signers and one from Liminal, confirming the use of Liminal’s infrastructure.” However, Liminal has strongly refuted these claims, stating that the multi-signature wallet in question was “created independently and further imported on the Liminal platform.”
Despite the conflicting narratives, WazirX maintains that there is no evidence that its signers’ machines were compromised, and it continues to stand by its report.
Conclusion:
As WazirX navigates these complex challenges, including ownership disputes and operational difficulties, the exchange’s users are left in a state of uncertainty. The phased INR withdrawal system, initially a hopeful sign for users, has been marred by complications, further complicating the platform’s ability to regain trust and stability in the volatile cryptocurrency market.
Credit: Decrypt
