Allegedly WazirX transfers customer’s $26M in a suspicious crypto token

A Crypto X user claimed that the WazirX team legally transferred a very large amount of the WazirX customers’ funds in a suspicious crypto token, Lovely Inu.

WazirX was a popular digital assets trading platform in India. The Singapore-based crypto platform gained huge popularity among Indian crypto investors following an announcement by the Binance crypto exchange to acquire the WazirX platform. Two years later, Binance co-founder Changpeng Zhao (CZ) showed his objection against WazirX leadership over the partial ownership transfer of WazirX’s control. Unfortunately four months ago, WazirX’s one of the cold wallets was hacked by an unknown hacker. Hacker successfully drained nearly 50% of the customers’ funds.

On 23 Nov 2024, A Crypto X user, who is representing WazirX customers against the WazirX hacking incident, noted that the WazirX team legally transferred $26M profits from BTC, DOGE, and XRP cryptocurrencies into an unknown Crypto coin called LOVELY.

This crypto X user said that the funds transferred by Wazirx in Lovely coin actually belong to WazirX customers, and he also raised questions about how it is possible that a very less known crypto token’s 35% supply hold by WazirX customers alone on the WazirX platform. By all these conclusions, this guy claimed that Lovely Coin is a scam coin or potentially a token launched by the WazirX team anonymously. He said that the WazirX leadership deserved to be jailed for this fraud.

This crypto X user also questions the authenticity of the alleged WazirX hack incident, suggesting it might have been a deliberate scam to benefit the founders at the expense of users.

He noted that the WazirX co-founders may have converted their crypto holdings into USDT before the hack was made public, securing their assets in advance.

After the incident, WazirX reportedly restructured users’ holdings into USDT, potentially causing losses during a bull market when other cryptocurrencies might have risen in value.

This X user also speculates that WazirX could have taken a loan stablecoin from Bybit or some other crypto exchange on behalf of customers’ crypto holdings as collateral, allowing the WazirX leadership to remain invested in the market while users struggle to recover their assets. Users are asking for the return of their original crypto holdings instead of equivalent stablecoin, which ultimately raised questions related to the platform’s transparency over critical decisions related to customers’ funds.

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