Investors of the Indian cryptocurrency exchange WazirX are preparing multiple police complaints against the exchange's management, accusing them of fraud and breach of trust. The exchange has not returned investor funds for over a month following a hacking incident.
Basis for Complaints
According to WazirX investors, they collectively lost over Rs 2000 crore (over 2 billion INR) due to a hacking incident on July 18. The exchange owners have locked their funds and suspended all withdrawals for over a month. A collective group of affected investors is planning to file at least 200 complaints in different police stations across India against WazirX directors Nischal Shetty and Sameer Mhatre, Binance exchange, and Liminal Custody security firm.
Complaint Content
In their complaints, investors accuse WazirX of dishonest misappropriation of property, fraud, negligence, cheating, and criminal breach of trust under various sections of the Indian Penal Code and the Information Technology Act. The legal process in India involves submitting a complaint to the local police station, where the police evaluate the content before filing a case. Leading this campaign is an anonymous Twitter handle @indiascrypto, which voices the concerns of WazirX investors.
Community Reaction
According to the draft complaint prepared by @indiascrypto, investors were enticed to invest in WazirX by aggressive marketing campaigns and promises of a secure trading environment. The draft also states that WazirX claimed to have been acquired by Binance, but there is much obfuscation from both parties regarding the deal. The allegations against WazirX and Liminal Custody include mutual blame-shifting for negligence that led to the hacking incident.
Investors are also discussing their future course of action on Twitter and plan to initiate legal proceedings against WazirX in search of justice and the return of their funds.
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