Shardeum Mainnet Launches Amid Lingering WazirX Crisis

Shardeum, a new Layer 1 blockchain co-founded by Nischal Shetty—also the co-founder of WazirX—is officially launching its mainnet on April 15. 

Touted as the world’s first autoscaling EVM-compatible chain, Shardeum enters the Layer 1 race with a substantial testnet track record: over one million contributors, 80 million+ transactions, and thousands of validators participating prior to launch.

However, this milestone arrives under a shadow—the unresolved crisis at WazirX, where lakhs of users remain locked out of their funds following a Rs 2000 crore cyberattack on July 18, 2024.

The WazirX Hack and Its Lingering Fallout

WazirX users have endured nearly ten months without access to their funds, which were compromised in one of India’s most significant crypto security breaches. 

The incident led to a sweeping freeze of assets on the platform. While the exchange management has since proposed a restructuring plan—currently under consideration by the Singapore Court—relief remains delayed.

According to Shetty, the approved scheme will enable users to recover at least 85% of their portfolio value, contingent on court proceedings. 

A vote on the proposal concluded with a 93.1% majority in favor of the restructuring. Still, fund recovery is now expected no earlier than May, offering little immediate solace to users left behind during one of the most critical windows of the recent crypto bull cycle.

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A New Venture, but an Unfinished Chapter

For many WazirX users, the timing of the Shardeum mainnet announcement feels incongruous. While Shetty champions the future of decentralized infrastructure through Shardeum, thousands of investors remain tethered to an unresolved past, watching as their assets remain inaccessible during market rallies.

What frustrates these users is not only the delay but also what they perceive as a lack of transparency from the WazirX leadership team. 

Communication has been sparse, timelines unclear, and trust eroded. The launch of Shardeum may represent progress and innovation in one arena—but for those still waiting for restitution, it represents a dissonance that’s hard to reconcile.

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Responsibility Must Precede Reinvention

This is not simply a case of juxtaposing innovation with inertia. It is a deeper question of credibility, accountability, and timing. 

In the crypto space—where decentralization often walks a fine line with detachment—founders cannot escape the obligations of one venture by shifting attention to the next.

The Shardeum launch deserves acknowledgment as a technological breakthrough. But it also demands context. When the same leadership helms both ventures, the success of one cannot ethically coexist with the unresolved harm of the other.

What the Community Demands

Users aren’t merely asking for the next big blockchain. They are asking for answers, transparency, and above all, their money back. 

These aren’t abstract demands—they are the very foundation of trust in any financial ecosystem, centralized or decentralized.

In this moment, innovation must be accompanied by introspection. Vision must walk hand in hand with resolution of past responsibilities. 

Because in crypto, just like anywhere else, reputation is not built on what you launch—it’s built on how you finish what you started.

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FAQ

1. When is the official launch of the Shardeum mainnet?

Shardeum’s mainnet is officially set to launch on April 15. Positioned as the world’s first autoscaling, EVM-compatible Layer 1 blockchain, Shardeum enters the market following a robust testnet phase, during which it recorded over one million contributors and more than 80 million transactions.

2. What is the connection between Shardeum and WazirX?

Shardeum was co-founded by Nischal Shetty, who also co-founded WazirX—one of India’s leading cryptocurrency exchanges. While the two platforms operate independently, the common leadership has drawn scrutiny due to WazirX’s ongoing crisis and the perceived overlap in responsibilities.

3. What happened during the WazirX cyberattack, and have user funds been recovered?

On July 18, 2024, WazirX suffered a massive cyberattack involving an estimated Rs 2000 crore in compromised assets. Since then, lakhs of users have been locked out of their accounts. Although a restructuring plan has received 93.1% approval from stakeholders and is under review by a Singapore court, fund recovery is not expected until at least May 2025.

4. Why is there controversy around the timing of the Shardeum launch?

The launch of Shardeum has sparked criticism among WazirX users, many of whom are still awaiting access to their lost funds. The concern stems from the perception that attention has shifted to a new venture without resolving critical issues in the previous one—raising questions about leadership priorities, transparency, and user accountability.

5. What has been the response from the WazirX leadership regarding user concerns?

Communication from the WazirX leadership has been limited, with many users citing a lack of clear updates and delayed timelines. Although Shetty has mentioned that the proposed plan may enable users to recover up to 85% of their holdings, the absence of concrete delivery and consistent engagement continues to erode trust within the community.