Nischal denies being Harshad Mehta, seeks support from WazirX users
Nischal Shetty, the co-founder of WazirX, recently spoke out about claims comparing him to Harshad Mehta, a notorious stockbroker, stating that he is a victim of a “false narrative”. He reached out to users on social media seeking support for his proposed restructuring plan, following a cyber hack that led to a loss of Rs 2000 crore in user funds.
Responding to allegations made by a user comparing him to the “Harshad Mehta of Web3”, Nischal reassured the public that he is diligently working to address the situation, as many WazirX users anxiously await the return of their funds. He stressed the difference between a scam and a cyber attack, reminding everyone not to be swayed by false narratives.
In light of the recent cyber hack, WazirX management faces mounting pressure to recover locked user funds. Following the July 18th incident where users lost 45% of their funds, WazirX proposed a restructuring scheme in Singapore court to redistribute losses across its users.
The restructuring plan is designed to reimburse user funds once operations resume. Shetty emphasized that withdrawals will be allowed post-restructuring to prevent any delays. He mentioned that allowing withdrawals before completing the restructuring efforts would hinder progress. Remaining frozen funds are currently subject to legal proceedings, with WazirX actively pursuing recovery through the appropriate channels.
The next two weeks are crucial for WazirX as the Singapore court prepares to conduct a user vote on the restructuring scheme. This decision will impact not only the management but also the 4.4 million users of the exchange. Stay tuned for further updates as this story develops.
