Collapsed Indian Crypto Exchange WazirX Misleads Customers, Falsely Claims Widespread Support for Moratorium Application

The WazirX crypto exchange team sent emails to all customers claiming full support for the decision to file the Moratorium application. However, the majority of customers assert that they do not support this decision, despite receiving these emails.

WazirX is a popular crypto exchange among Indian traders. Nearly one and a half months ago, the exchange suffered a hack, losing approximately $230 million worth of cryptocurrencies. Following the hack, all services on the exchange were halted, with no withdrawals permitted except for a small amount in INR. A week ago, WazirX leadership filed a Moratorium application in a Singapore court to get enough time to go with a new plan to restructure the platform. 

To gather support for the application, the WazirX team sent pop-up messages to all customers via the WazirX trading app, asking for their backing. However, within the Crypto X (formerly Twitter) community, the majority of users expressed that they do not support WazirX’s decision.

Over the past few days, many WazirX customers reported receiving emails from the WazirX team falsely stating that they supported the Moratorium application, even though they had not shown any support. In short, most WazirX customers claim that the exchange is misleadingly portraying customer support for the application.

After significant controversy and backlash, the WazirX team sent email messages to customers addressing these misleading tactics.  

An Indian crypto influencer also weighed in, suggesting that serious issues are happening behind the scenes at WazirX. He warned WazirX customers not to blindly trust the leadership’s claims. Indirectly, the influencer hinted that this might not be a mistake by the WazirX team but rather a scam.  

WazirX’s legal team is already embroiled in a major conflict with Binance, as WazirX is seeking $17 million from the Binance crypto exchange and legal battle is active in a court in Singapore.

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