WazirX Faces Backlash Over Blocking 34% of INR Funds Deposited by Users After Hack
WazirX, one of India’s leading cryptocurrency exchanges, is facing backlash from users for blocking 34% of the INR funds deposited after a recent hack. Several users have reported that the WazirX team is holding back a significant portion of their deposits, causing frustration and financial difficulties. Despite users raising concerns and reports emerging about this issue two days ago, WazirX has yet to take corrective action.
WazirX Hack Incident
Approximately one month ago, WazirX experienced a major security breach, resulting in the loss of $230 million. In response, the exchange immediately suspended all fund withdrawal services to prevent further losses and secure its platform. During this period, WazirX kept deposit services open, allowing users to continue adding funds to their accounts.
Partial Withdrawal Resumption & conflict
Two days ago, WazirX announced a phased withdrawal plan, allowing users to withdraw 66% of their funds. This withdrawal process is being conducted in two phases: 33% of the funds can be withdrawn in the first phase, and another 33% in the second phase.
However, users who deposited INR funds after the snapshot date (the date when the exchange recorded the state of all user balances) have reported that they are being unjustly affected. These users claim that their funds are being blocked, even though they deposited money after the hack and should not have been impacted by the security breach.
Criticism from Users
Users have expressed frustration over WazirX’s handling of the situation. Many argue that if the exchange allowed deposits after the hack, those funds should not be subjected to the same restrictions as those present during the hack.
One user commented, “It’s your mistake you paused withdrawals but kept deposits open for 3 days.” They argue that the exchange’s decision to allow deposits while restricting withdrawals has led to confusion and financial inconvenience.
This crypto X user also claimed that WazirX team taken out $12.12 million for legal fees & other stuff, which was customers fund.
WazirX Urged to Take Action
The growing discontent among users has led to increased calls for WazirX to address the issue promptly. Users are urging the exchange to unblock the 34% of funds and ensure that deposits made after the snapshot date are not affected. The lack of communication and action from WazirX has been criticised as another case of “carelessness and ignorance” on the part of the exchange.
Moving Forward
As the situation unfolds, users are eagerly waiting for a response from WazirX, seeking clarity on the status of their funds and a resolution to the issue. The incident has highlighted the importance of transparent communication and proactive customer service, especially in the volatile market of cryptocurrency trading. With user trust on the line, WazirX will need to address these concerns to maintain its reputation and user base.
