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- WazirX swiftly withdrew millions from Bybit immediately following the $1.5 billion hack.
- The exchange has restricted user withdrawals for over seven months after a major hack in July 2024.
- WazirX’s secret fund movements have raised significant concerns over transparency and asset safety.
WazirX withdrew funds from Bybit after the $1.5 billion hack on February 22. The exchange made this move without notifying its users. Most platforms assured clients that their funds were safe. WazirX acted differently and shifted millions of dollars in secret.
According to crypto analyst Aditya Singh, the firm moved its assets after the breach. He shared transaction proofs on X and stressed that the exchange did not act in the users’ best interests. The transfer contrasts with the swift safety measures reported by other exchanges.
Source: Aditya Singh
In October precisely, WazirX transferred $75 million to other exchange platforms Aditya Singh had reported about the tansfer. These funds got into both Bybit and KuCoin without much fuss. This caused concerns over the management of funds and accountability. Furthermore, customers are still unable to access their money after an attack in July 2024.
That loss was nearly equivalent to ₹2,000 crore, or about $230.8 million. After that incident, the firm transferred the remaining user funds to Bybit. However, at the time, there was no record of Bybit registration with the Indian Financial Intelligence Unit. As such, these actions have raised new considerations regarding the safety of funds.
User Funds and Future Steps
Despite the pressure on user withdrawals, WazirX still restricts such operations, prompting new questions over its management of assets. The potential for a community token was discussed by the project founder, Nischal Shetty, where the lost funds would be returned using RT tokens.
However, the details of these plans remain sketchy. Furthermore, the approach hinted that the exchange may value its stakes more than the client’s interest. However, members have claimed that they have been locked out of their cash for over seven months waiting for the court affirmation of the firm’s restructuring plan. The absence of clear evidence tends to compound concerns over transparency, especially in regards to reserves.
However, Bybit seems to be up and running again with business operations and normalcy back on track. According to Lookonchain, Bybit took in 446,870 ETH ($1.23 billion) from loans, whale deposits, and direct ETH purchases. This recovery stands in stark contrast to the maneuvers WazirX had been undertaking.
To sum up, WazirX’s fund movement has broughConcerns have been raised in the crypto community over WazirX’s fund movements. Another observation is that it seems that the exchange protects its assets while the users remain unaware of what is really going on. These developments require better and more timely communication from WazirX. The market now awaits further development in this area of investment.
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