Nischal Shetty responds to the allegations of secret $72M customer fund transaction to Chinese crypto platform
Nischal Shetty confirmed that there was nothing confidential about the fund transaction between WazirX & Bybit. Coinswitch CEO Ashish Singhal decided to attack WazirX exchange via lawsuit action, in order to recover funds from WazirX exchange.
WazirX was a Singapore-based popular Indian crypto exchange, but 3.5 months ago the exchange faced a hack incident and lost 45% of customer funds. This exchange was holding some funds belonging to the popular Indian crypto exchange, Coinswitch Kuber.
On 21 Oct 2024, Coinswitch CEO Ashish Singhal shared many details regarding the crypto transactions by the WazirX leadership post the hacking incident and confirmed that $72.13 Million worth of cryptocurrencies was transferred by the WazirX leadership to Bybit exchange and $1.5 Million to Kucoin exchange.
Coinswitch’s CEO confirmed that he is going to pursue legal action against WazirX exchange to recover funds belonging to the CoinSwitch platform.
Bybit unregistered crypto exchange
Earlier this year, Bybit was one of the popular crypto exchanges in India. However, this year the exchange terminated its services for Indian crypto traders, as the exchange distanced itself from the Indian crypto market citing a regulatory crackdown against non-FIU registered crypto exchanges.
Many media reports noted that Bybit is a Chinese company, which is not registered in India, raising questions about why WazirX leadership decided to transfer funds to Bybit.
While some people supported WazirX’s decision of transferring funds to Bybit exchange as a move to prevent any hidden hacking incident, critics questioned why, if it was a decision made under tense conditions to protect funds, WazirX leadership never disclosed this decision to customers, even four months after the hack incident.
WazirX response against allegations
Today, WazirX CEO Nischal Shetty clarified that all these allegations are part of a pre-planned negative PR campaign against the WazirX platform because everyone knows how blockchain technology works, where transparency plays an important role.
Nischal also said that nothing was secret, and people need to understand that the shared crypto addresses were officially shared by the WazirX team.
He also confirmed that the WazirX team is working to prepare a crystal clear report on all the transactions made post-hacking incidents, which is taking more time than people expect.
Regarding the funds transferred to Bybit, he explained that WazirX has been using third party crypto platforms to manage crypto-related financial activities because custody service providers can’t support all tokens.
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