LiveMint‘s latest article provides an in-depth analysis of the significant issues arising from the $230 million hack that targeted WazirX on July 18, 2024. The breach has impacted around 4.2 million users, predominantly in India, leaving them grappling with the uncertainty of fund recovery and a perceived lack of accountability from the exchange.
Mr. Sumit Agrawal, Founder of Regstreet Law Advisors and former SEBI Officer, is quoted suggesting that Indian users might pursue criminal litigation against WazirX. He believes this approach could aid in fund recovery and hold accountable those responsible. Criminal proceedings could be particularly effective in cases of fraud or misconduct, compelling action and restitution.
Agrawal also notes that the evolving nature of cryptocurrency regulation in India means investors are currently exposed to significant risks due to the absence of a comprehensive regulatory framework. He advocates for collaboration between SEBI and the Reserve Bank of India (RBI) to establish regulations that can prevent such incidents in the future. Until then, investors must remain cautious and well-informed about the risks associated with digital assets.
Mr. Ajeet Khurana ⭕, founder of Reflexical, a Singapore-based advisory firm for Web3 startups, has raised concerns about the use of customer funds for legal expenses. He calls for greater transparency regarding the management of funds by both Indian and Singaporean entities involved in the crypto sector.
For further details, the complete article is available at LiveMint at https://lnkd.in/daSxyZtS
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