In a significant development in the WazirX hack saga, Indian cryptocurrency exchange CoinSwitch has decided to pursue legal action against WazirX owners for the retrieval of their funds invested in the exchange worth Rs 80 crore.
CoinSwitch Legal Action
CoinSwitch claimed in a series of tweets posted on 'X' that the response from WazirX regarding the recovery of their funds has been dismal, forcing them to seek legal options. This is the first entity/customer of WazirX who has decided to pursue legal action against the exchange to recover their funds.
WazirX Hack Aftermath
WazirX owners are under heavy criticism due to their alleged mismanagement post the July 18 cyber hack that resulted in the loss of Rs 2000 crores of user funds. A month after the hack, WazirX had announced that they will allow only 66% INR withdrawal for users while 100% crypto holdings are still in limbo. This has angered users who feel they have been asked to take the hit despite alleged negligence of management that led to the hack of the multi-sig wallet on July 18.
CoinSwitch Response
The announcement by CoinSwitch came barely moments after WazirX co-founder Nischal Shetty announced that WazirX will file a moratorium application with the Singapore High Court under the Insolvency, Restructuring and Dissolution Act 2018. The funds CoinSwitch has on WazirX include Rs 12.4 cr in INR, Rs 28.7 cr in ERC20 tokens, and Rs 39.9 cr in other tokens, which makes up about 2% of all funds of CoinSwitch on WazirX. CoinSwitch has reassured its users that all funds on its platform remain safe and that there is no need to panic. They also claimed that following the hack incident, CoinSwitch utilized its treasury to maintain a 1:1 ratio of user crypto holdings to ensure users’ security. Additionally, CoinSwitch plans to publish its proof of reserves for the second time this year to enhance transparency.
This is a developing story. Follow The Crypto Times for more updates.
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