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WazirX paid ₹342.28 crore to Qizil21 Software, a company owned by co-founder Nischal Shetty and his wife, in FY 2021–22. The same company received just ₹28 crore the previous year. No explanation has been provided for this steep increase in business auxiliary payments. Thus, raising concerns on whether the real vulnerability behind the WazirX hack was poor cybersecurity or the decisions made long before the attack?
Another Shetty-linked firm, Shibuya Labs LLP, received ₹35.5 crore in FY 2020–21 but only ₹2.14 crore the next year. Forensic experts say such swings in fund distribution raise flags, especially when both companies are owned by the same people.
The timing of these transactions is raising concerns. The payouts occurred well before the July 2022 crypto hack, which wiped out ₹2,000 crore in user funds. Critics claim these internal financial decisions may have compromised the platform before external attackers ever struck.
In August 2022, Binance CEO Changpeng Zhao stated that the 2019 acquisition of WazirX was never finalized. This contradicted earlier claims made by Shetty. The payment to Qizil21 after the supposed sale raises serious questions about ongoing financial control.
The Enforcement Directorate has already frozen parts of WazirX’s assets twice. Legal experts warn that if related-party deals lack commercial substance, Section 188 of the Companies Act and the Prevention of Money Laundering Act could apply.
Investor sentiment has soured as user withdrawals are still frozen. The controversy surrounding WazirX now centers on governance, transparency, and accountability. The silence from Nischal Shetty, Zanmai Labs, and Binance only deepens concerns. For now, users and regulators are left waiting for answers and possibly, further action.
Also Read:After ₹2,000 Cr Hack, WazirX Co-founder Nischal Shetty Quietly Transfers Ownership to Wife
