Co-Founder Nischal Shetty Clarifies Misconceptions Amid $230M Loss

India-based cryptocurrency exchange, wazirx wazirx Centralised ExchangeCrypto trading and Information was recently in the crosshairs within days of a July 18 hack that saw $230 million siphoned off. Some of the allegations and misconceptions have been debated and corrected by the owner of the exchange while the recovery goes on.

Losses were incurred by the company through a hack on a multi-sig wallet that was hosted by a third-party provider and massive criticisms flooded the crypto community. Many people criticized WazirX for not noticing the breach for eight days and for holding 50% of the users’ funds in a single wallet; Aditya Singh, an Indian crypto influencer, accused the exchange of negligence.

In response to such assumptions, WazirX co-founder nischal shetty nischal shetty Nischal Shetty is the Founder of India’s largest and extremely trusted crypto exchange platform called WazirX. He is an entrepreneur who is passionate about technology, blockchain, crypto, and innovation. Founded WazirX in 2018 with a mission to involve every Indian in the blooming Blockchain revolution, built along with a team of passionate blockchain believers and hardcore traders. At present, he is also serving as Committer at Shardeum since February 2022 which is a sharded, infinitely scalable, community-driven completely decentralized layer 1 blockchain firm.
 
In 2010, Nischal became the Founder of Crowdfire which is a Software development company based in Mumbai. Via Crowdfire he helps individuals easily manage their social media profiles around multiple platforms by bringing them into a single and simple interface. Nischal Shetty began his career life holding and leading the position of Software Executive at 31 Infotech developing virtual solutions in Java and related technologies. Whereas In January 2009, he Founded Twi5 which is one stop place for discovering all the best Twitter applications and attracts thousands of visitors every day. Apart from this, he adores sharing his opinions on technology, development, and innovations. Nischal Shetty has been honored with several awards and recognitions some of which include Forbes 30 under 30, and the Inspiring CEO’s award by ET.  EntrepreneurDeveloper/ProgrammerChief Executive OfficerAuthor took to Twitter to outline multiple points to provide clarity on these allegations. Shetty clarified that the breach transpired on July 18 while the attackers were accused of having infiltrated the company’s network for a week before the incident. 

He stressed the relevance of the info, pointing out that if it is unreliable, it will negatively impact the progress of the recovery processes and act against the inhabitants’ benefit.

Shetty was quick to clarify the wallet that was hacked was a cold wallet with multi-sig security with two signers from two different firms and it was not a hot wallet which holds, large amounts of cryptocurrencies. He also said the users’ INR balance was intact and the WazirX platform was not hacked. 

The hack happened to the multi-sig wallet without affecting other compartments that were run through a third-party custody firm, Liminal.

Another person involved in giving his perception about the incident was Mudit Gupta who is a prominent person in the crypto security domain. He said that the attackers’ conducted a dry run on non-WazirX contracts before executing the hack on the platform. “The attackers rehearsed it on other contracts,” Gupta said, “WazirX contracts were not targeted initially before the attack. ”This clarification assisted in eradicating most of the misunderstanding that was created by the hack.

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