WazirX Poll Controversy Raises Questions Amid Slow Recovery

• WazirX mishandled poll with initial limited voting options.
• 9,000 users mistakenly received “Thank you” emails.

WazirX, India’s largest cryptocurrency exchange, is facing backlash over its slow response to a $200 million hack and its mismanagement of a poll regarding debt restructuring. In line with Singapore High Court directives, WazirX recently disclosed over 240,000 wallet addresses as part of its parent company, Zettai Pte Ltd’s restructuring process. However, concerns about transparency and accountability have been mounting.

In an attempt to gauge creditor support for a moratorium, WazirX launched a poll that initially only allowed users to vote “Yes.” Following a court order, additional “No” and “No Position” options were introduced on September 12. Despite this, 72,120 users voted in favor of the moratorium, representing $64 million in claims, while only 1,491 creditors opposed. 

The polling process came under fire when WazirX mistakenly sent a “Thank you for supporting WazirX” email. It has been sent to around 9,000 users who had not participated. It sparks concerns over the integrity of the vote.

WazirX has since admitted the error and issued a follow-up email on September 7, apologizing for the confusion. Additionally, they have agreed to future polls being independently supervised, as ordered by the court, to ensure transparency.

Very Slow Actions

In response to the Rs 2,000 crore hack, WazirX has taken a series of steps, albeit slowly. The exchange has reportedly committed to restructuring and enhancing its security protocols. They have also engaged with creditors through affidavits and court filings. Though many users remain dissatisfied with the lack of an independent investigation into the hack. Singapore’s Judicial Commissioner Kristy Tan clarified during a September 26 hearing that she could not order investigations into the hack, further frustrating affected users.

As the focus now shifts to Zettai’s restructuring, WazirX’s slow measures in resolving the hack continue to cast doubt on its commitment to security and transparency.