WazirX Paid Founders ₹342 Cr Just Before ₹2,000 Cr Hack—Coincidence or Red Flag?

Timing is everything—especially when millions vanish into the crypto void.

The Payout Puzzle: Weeks before hackers drained ₹2,000 crore from WazirX, the exchange quietly funneled ₹342 crore to its founders. 'Operational expenses'? Or a lifeboat deployed before the iceberg hit?

Numbers Don't Lie (But People Do): The math screams for scrutiny—15% of the stolen amount magically changed hands pre-breach. Even Wall Street hedge funds would blush at that 'strategic allocation.'

Crypto's Golden Rule: Follow the money. Unless it's already offshore.

Who is Responsible for Wazirx? Nischal Shetty or Changpeng Zhao

The timeline adds context to Binance’s dramatic distancing in August 2022. When Changpeng Zhao announced that his exchange had never finalised the 2019 WazirX acquisition, observers struggled to explain the sudden reversal. 

The situation became more complex following the ₹2000 crore hack, as Nischal Shetty has maintained my way or highway attitude. Shetty asserts that if users don’t comply with their plan, he won’t release funds until the Binance dispute is solved.

With ₹342 crore now shown flowing to a founder‑owned firm, the earlier retreat looks less abrupt and more pre‑emptive. If Nischal had already sold Wazirx, why was it still paying his firm such large amounts?

Regulatory patience appears thin. The Enforcement Directorate has already frozen selected WazirX assets on two occasions, and lawyers close to the case expect additional summonses after the latest disclosures. 

Under Section 188 of the Companies Act, related‑party transactions must demonstrate a clear commercial rationale. If investigators conclude that the services in question lacked substance, provisions of the Prevention of Money‑Laundering Act could enter the frame.

Investor confidence, once buoyed by WazirX’s status as India’s largest crypto marketplace, has faded. Industry analysts cite a pattern: sudden growth, loose controls, and large payments that resist easy explanation. 

For many traders still locked out of their accounts since the hack, the figure ₹342 crore now defines the gap between promised transparency and perceived reality.

Repeated requests for comment sent to WazirX, Zanmai Labs, and Nischal Shetty remained unanswered at the time of publication. The silence, paired with an expanding paper trail, leaves regulators, former customers, and market watchers facing the same unresolved question: was the exchange’s biggest vulnerability external hackers or decisions made in‑house long before the breach?

Also Read: Nischal Transferred 100% Shares to His Wife Weeks After WazirX Hack