**WazirX CEO Nischal Shetty Speaks Out for the First Time Since $234 Million Hack**
WazirX, a leading Indian cryptocurrency exchange, suffered a massive $234 million hack in July 2024 that sent shockwaves through the Indian crypto community. Since the incident, while the exchange maintained internal transparency through announcements on its social media platform X, neither CEO Nischal Shetty nor the leadership team made any public appearances to directly address the growing concerns of its users.
The situation was further complicated by the disabling of the comment section on WazirX’s social media posts, limiting open discussions and causing anxiety among users regarding fund recovery and the operational stability of the platform.
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### WazirX CEO Nischal Shetty Breaks Silence in Exclusive Interview
For the first time since the hack, WazirX CEO Nischal Shetty stepped forward to answer critical questions about the recovery process in an exclusive interview with Switch, an Indian podcast channel under Zee Production.
During the interview, Shetty discussed several key issues, including discrepancies in user payouts, the use of funds for legal and operational expenses, and the steps WazirX is taking to protect assets in the future.
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### How Much Have WazirX Users Been Refunded?
Addressing the question of why users have not been fully reimbursed despite the appreciation of crypto token prices since the hack, Shetty explained:
> “Around $234 million worth of assets were stolen during the hack. Following this, the exchange froze user portfolios to prevent users from missing out on market gains. The portfolio value was then rebalanced on January 17, 2025.”
As per the recovery plan, users are set to receive 85% of their portfolio value calculated on the rebalancing date, with the remaining 15% to be returned over the next 2-3 years.
When asked about reports of some users receiving only 20-30% of their tokens, Shetty clarified that:
– The 85% refund relates to the **total portfolio value** on the rebalancing date, **not the exact token count**.
– Between the rebalancing date and payout, cryptocurrency prices fluctuated — some tokens lost value while others appreciated.
– Users holding tokens that dropped in value received fewer tokens, while those with tokens that surged received more, leading to variation in token amounts received.
– The plan guaranteed 85% of portfolio value, but market price changes caused amounts to differ.
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### Clarifying Allegations of Fund Misappropriation
Shetty firmly denied any misuse of customer funds, especially accusations concerning funds being diverted for legal battles in Singapore related to the rearrangement scheme.
He explained that the **cost fund** used for operational and legal expenses was created solely from the **remaining assets left in the exchange’s wallets after the hack**, and not from customer deposits.
> “All expenditures were strictly to keep the exchange operational and to enable the withdrawal processes for users. This was a necessary step — without it, WazirX would have ceased operations completely, delaying recoveries and payouts.”
He assured users that customer funds have been kept separate to the extent possible under the circumstances.
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### What Lies Ahead: Future Outlook for WazirX Users
– The remaining **15% of user funds** in the recovery plan will be refunded gradually over the next 2-3 years.
– This phased approach allows WazirX to restore full portfolio value more effectively.
– The 15% is **not capped**, meaning if WazirX recovers more assets than expected, users could receive more than initially planned.
– The recovery plan has been **approved by the court** and is designed to be quicker and less disruptive than liquidating the company.
In addition, WazirX has partnered with **BitGo** to enhance the security of user funds through:
– Institutional-grade custody solutions
– Multi-signature wallets
– Insurance coverage
This partnership aims to ensure transparent fund management and bolster confidence as part of WazirX’s post-hack recovery strategy.
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**Also Read:** [WazirX Starts Phased Trading Rollout with No Fees for 30 Days]
https://bitcoinethereumnews.com/finance/wazirx-ceo-clears-air-on-fund-misappropriations-future-plan/