WazirX’s Quiet Fund Movement: Silence Speaks Volumes

Following the $1.5 billion Bybit hack on February 22, WazirX quietly withdrew its funds from the exchange without informing its users.

Crypto exchange WazirX quietly withdrew its funds from Bybit following the $1.5 billion hack on the exchange on February 22. This move has raised concerns as WazirX users have been unable to access their funds since a separate hack in July 2024.

After the Bybit hack, most exchanges assured users that their funds were safe. However, WazirX discreetly withdrew millions of dollars from Bybit.

In October 2024, WazirX moved $75 million to various exchanges, including Bybit and KuCoin. This latest withdrawal from Bybit has raised questions about whether the exchange is prioritizing the safety of its own assets while keeping users in the dark.

Crypto analyst Aditya Singh shared transaction proofs on X. He stated that WazirX withdrew its funds from Bybit immediately after the hack but has failed to act in users’ best interests. “Imagine if Bybit didn’t cover losses, what would have happened,” Singh wrote.

In July 2024, WazirX suffered a ₹2,000 crore hack, about $230.8 million in today’s money. The exchange then sent the remaining user funds to Bybit, which wasn’t even registered with India’s Financial Intelligence Unit (FIU) at the time.

However, WazirX’s latest move has left users questioning the exchange’s commitment to transparency.

Notably, WazirX users have been unable to access their funds for over seven months while the exchange awaits court approval for its restructuring plan. Despite multiple calls for proof of reserves (POR), WazirX has failed to provide transparency regarding user holdings.

Despite the massive breach and temporary withdrawal delays, Bybit is back up and running. On the flip side, WazirX still hasn’t turned on withdrawals. Meanwhile, its founder, Nischal Shetty, hinted at issuing RT tokens to distribute any recovered funds.

Bybit has now almost closed the ETH gap following the $1.5 billion hack. Lookonchain reveals that Bybit has received 446,870 ETH worth around $1.23 billion through loans, whale deposits, and ETH purchases.