The cryptocurrency market is booming after the U.S. presidential election in November 2024. Bitcoin hit an all-time high of $99,834 on November 22, and other major cryptocurrencies, like Ethereum and Binance Coin, also saw big gains. This rally created opportunities for investors to make profits. However, thousands of WazirX users could not take advantage because their funds are still frozen on the platform.
WazirX’s Unresponsive Handling of Funds
The situation traces back to a security breach in July 2024, where over $230 million worth of digital assets were drained from one of WazirX’s multisig wallets. Despite the gravity of the incident, WazirX has been slow to implement a recovery plan. In a November town hall, the exchange announced its intention to resume trading through a Singapore-based scheme of arrangement aimed at restructuring its liabilities. The plan includes releasing $284 million in liquid assets and compensating users with recovery tokens.
However, Legal advisors have estimated that users may recover only 55-57% of their funds. Social media platforms are awash with calls for greater transparency, with users accusing WazirX of negligence and corporate misconduct.
This has left users frustrated, especially as the market has rallied to new highs.
Protests Against WazirX and Pi42
As anger grows, users are now protesting the involvement of Pi42 Exchange, a platform co-founded by WazirX’s Nischal Shetty, at the India Blockchain Week (IBW) event. IBW will take place on December 4-5 in Bangalore.
Protesters are demanding that Pi42’s sponsorship of the event be canceled. They claim that Pi42 is indirectly benefiting from the funds stuck on WazirX. Some even accuse IBW of ignoring the concerns of victims. Social media campaigns like #BoycottIBW are gaining momentum, with many users vowing to protest at the event.
What’s Happening With Binance?
WazirX’s problems are further complicated by an ownership dispute with Binance. WazirX claims Binance held the majority of its funds, but Binance denies this. This disagreement has delayed recovery efforts, leaving users in a tough spot.
To make things worse, Indian authorities are investigating the platform for possible violations of financial laws. Regulators are also looking into how the hack happened and whether WazirX acted responsibly.
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