- WazirX lands in hot water due to a controversial poll about fund recovery.
- Founder Nischal Shetty acknowledges shortcomings in the poll and plans to issue a feedback form.
- WazirX initiates bounty programs and seeks legal advice to resume withdrawals and compensate users.
WazirX faces harsh criticism over a misleading poll on fund recovery, prompting transparency efforts and legal consultations.
WazirX’s Poll Sparks Backlash
WazirX, a leading cryptocurrency exchange in India, is under fire following a dubious poll conducted on July 27. This poll, aimed at gathering user opinions on fund recovery after a significant hack, has been accused of being deceptive and potentially unlawful by industry observers.
The poll offered users two choices regarding their remaining funds, positioning it as a measure to share losses fairly. However, critics argue that it is neither fair nor legal. Co-founder Nischal Shetty has clarified that the poll was meant to gauge customer sentiment and was not legally binding. In response to the uproar, WazirX plans to release a more detailed feedback form soon.
Community and Industry Reaction
The crypto community has been vocal in its disapproval. Leaders from competing exchanges such as Giottus, CoinDCX, and Unocoin have openly criticized WazirX’s approach, asserting that it undermines customer interests and damages the ecosystem. Additionally, customers have raised concerns about the fairness and legality of the proposed solutions. There are unconfirmed reports that WazirX has sought assistance from Binance to compensate affected users, though WazirX has not confirmed these claims.
Recovery Efforts and Future Plans
WazirX has announced several initiatives to recover the stolen funds and rebuild trust. The exchange has launched bounty programs for on-chain investigators, offering up to $10,000 in Tether (USDT) for actionable information that leads to the freezing of stolen assets.
In an update on July 25, Nischal Shetty informed users about their efforts to resume withdrawals. He mentioned that they were working on implementing the poll results and aiming to go live shortly. Legal experts are being consulted to review the poll’s duration and set a potential reopening date, contingent on positive polling outcomes.
Measures to Restore User Trust
WazirX’s initial recovery plan involves starting with a fraction of users’ crypto portfolios, locked in tokens. Shetty reassured users that they are committed to finding ways to unlock these tokens over time, emphasizing the need for legal scrutiny and user feedback.
Conclusion
The WazirX poll controversy has highlighted significant challenges in managing security risks and maintaining user trust. As the exchange navigates this turbulent period, its response and future actions will likely be crucial in regaining user confidence and sustaining its reputation in the volatile landscape of cryptocurrency trading.
