WazirX Users Demand ED Probe, Seek Nirmala’s Attention
In a letter addressed to Nirmala Sitharaman, WazirX users from India are also accusing Nischal Shetty of socializing their losses under foreign legal protection.
In the latest development in the WazirX hack, a group of advocates filed a formal representation to the Finance Minister of India, Nirmala Sitharaman, demanding a thorough investigation by the Enforcement Directorate (ED) into the country’s biggest crypto hack of over Rs 2000 crore.
In a letter addressed to Finance Minister Nirmala Sitharaman, the aggrieved users have accused Nischal Shetty, co-founder of WazirX, and his associates of executing an “insider fraud” through a cyber hack on July 18 that resulted in loss of 45% user funds.
In their representation, the WazirX users have called for the Indian government and the ED to investigate the matter thoroughly, arguing that Shetty and his team are responsible for the security breach and poor handling of this case. The same group had also written a letter to Chief Justice of India DY Chandrachud requesting his intervention in the case.
The users have also claimed in their complaint that the management of “cold wallet” of the exchange falls directly under Shetty and others associated with WazirX.
The complaint also highlighted the attempt by Shetty’s team to impose Singaporean legal frameworks on Indian users, claiming it undermines Indian law, as an overwhelming majority of WazirX users are Indian citizens.
The demand for an ED investigation adds a new dimension to India’s already complex relationship with cryptocurrency regulation. As the Finance Ministry under Nirmala Sitharaman levies 30% tax and 1% TDS on crypto gains, they can not ignore these kinds of situations where over Rs 2000 crore are at stake.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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