2024

when

Security

WazirX

WazirX co-founder Nishcal Shetty broke his silence on the Rs 2000 crore WazirX hack controversy and responded to queries of investors and other crypto influencers on Monday, amid intense public scrutiny.&nbsp;It has been a month since the July 18 hack of WazirX exchange that resulted in loss of 45% investor funds and suspension of remaining 55% funds.
However, in a set of tweets posted on ‘X’, Shetty questioned investors and the overall crypto industry as to why they didn’t warn him and WazirX about the risks of storing 45% funds in a single wallet. Responding to a tweet by a crypto influencer on ‘X’, Shetty claimed that the criticism of WazirX, because of their decision to store 45% investor funds in a single digital wallet, has emerged only after the July 18 hack.
Shetty claimed that his exchange had kept their proof of reserve (PoR) report in public domain over the past year and yet they did not receive any warning regarding the risks of storing a large amount of cryptocurrencies in a single digital wallet.&nbsp;
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 “Despite us opening up these wallet addresses for PoR over a year ago, why didn’t anyone from the industry care to point out that this was a bad practice? Take yourself for example, you’ve been vocal about our PoR in the past, I wonder why you never pointed out if you always knew this was not an industry best practice?” said Nischal Shetty, co-founder, WazirX.
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 In the past PoR was asked by many including influencers from the industry (I’m guessing you must have asked and covered the fact that WazirX made the PoR live). All these wallets were made public as part of PoR by WazirX over a year ago. Despite PoR, you or anyone else never… <a href="https://t.co/GUBfiXMXrW" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/GUBfiXMXrW</a>— Nischal (Shardeum) 🔼 (@NischalShetty) <a href="https://twitter.com/NischalShetty/status/1825476596054306992?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 19, 2024</a>
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Shetty’s bizarre remarks were met with angry retorts from the investors who said that Nischal is allegedly trying to pass the blame on investors for not warning his company from committing an error of judgement.
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 Wow! The question is now on the community itself by Nischal. “You DIDNT QUESTION US THEN” Why are you questioning us now? . I will answer this in sometime. <a href="https://t.co/bHSsFJjdaD" target="_blank" rel="noopener noreferrer nofollow">https://t.co/bHSsFJjdaD</a>— CA Sonu Jain (Crypto Tax Expert) (@TheWeb3CA) <a href="https://twitter.com/TheWeb3CA/status/1825525576222085378?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 19, 2024</a>
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 Source: Twitter
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The WazirX had also released a <a href="https://wazirx.com/blog/google-subsidiary-mandiant-certifies-wazirx-laptops-were-not-compromised/" target="_blank" rel="noopener noreferrer nofollow">statement</a> on Monday where they claimed that a forensic audit conducted on the laptops of their exchange showed no breach on July 18 when the hack occurred. WazirX had blamed their estranged security partner <a href="https://www.cryptotimes.io/2024/08/19/wazirx-blames-liminal-for-hack-investors-say-we-trusted-wazirx/" rel="noopener noreferrer nofollow">Liminal Custody</a> for the breach at their end. Liminal has refuted the allegations and invited WazirX for a fair investigation into their system.
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 Also Read: Breaking: Liminal stands ground, blames WazirX Security for Hack
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“Why didn’t you warn us before?” WazirX co-founder asks month after hack

The Crypto Times

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