The massive hacking attempt at WazirX, India’s largest crypto exchange, sent shockwaves in the global crypto community and flooded the internet with speculations, opinions and conspiracy theories.
On Thursday, as news broke out of a massive security breach at WazirX platform and subsequent loss of $234.9 Million worth of funds, crypto lovers took to X (formerly Twitter) and Reddit platforms to share their piece of mind.
Many claimed that the attack would only thwart the pace of crypto adoption in India- a country that is grappling with high taxation rates on crypto related earnings.
Saleem Lala, a prominent voice in the crypto space, tweeted, “The worst part about Wazirx Hack is, if the funds aren’t recovered and users have to take a haircut on their crypto assets, there will be absolutely no tax deduction allowed from the losses. People still have to pay taxes on their gains and forget their losses (sic).”
The breach has exposed serious security gaps, leading to a broader conversation about the need for better protection measures in the industry. Many users were quick to point out the lack of accountability culture among industry leaders in the crypto landscape.
Naimish Sanghvi, founder of Coin Crunch India, expressed his concerns: “WazirX is blaming Liminal. Liminal is blaming WazirX. Poor users who will probably never see their complete funds back. No one takes responsibility in India. When Buyucoin was hacked, they denied it while we were holding a list of their users in our system.“
Hariharan Iyer, a well-known blockchain developer, also weighed in, stating, “30% tax, TDS, off-ramp complications, and now the biggest CEX hack in the country. It must suck to be a crypto investor in India. Not sure how much of the $235M is user funds, but if it’s sizeable, the government is going to come down hard on WazirX (and maybe others too) .”
Mudit Gupta, a security researcher and auditor, provided a more technical perspective: “Desi MtGox just happened. RIP WazirX. Brace for another “crypto ban” in India. Centralized exchanges are literally the opposite of decentralized finance and cryptocurrencies but the politicians will use this hack to throw dirt at crypto and also add If you don’t understand it, ban it(sic).”
Adding a touch of humor amidst the serious concerns, Kanik Rajput shared a meme highlighting the Indian government’s stance on crypto taxation, even in the wake of a hack. The meme depicted the Finance Minister with the caption, “Hackers have to pay 30% tax”.
The breach at WazirX has undoubtedly raised concerns and highlighted the urgent need for enhanced security measures across crypto exchanges. As investigations continue, the crypto community will be watching closely to see how WazirX and other platforms respond to this challenge.
Also Read: WazirX Releases Official Statement on $230 Million Attack