A legal battle is unfolding between users of the WazirX crypto exchange and its local entity Zettai in Singapore's High Court. Users are demanding access to millions in frozen assets.
Legal Clash Over Ownership of Crypto Holdings
According to the lawsuit, users represented by advocate Romy Johnson argue that their digital assets should be legally protected as client property, not company assets subject to restructuring. The claims center on Zettai's move to lump user balances, including Bitcoin and XRP, into a single restructuring pool alongside allegedly hacked tokens, which they argue violates Singaporean law.
Inside Job Allegations Gain Steam
The plaintiffs have provided evidence showing that the supposedly hacked tokens were moved using internal multi-signature wallets, which require multiple internal approvals. To date, Zettai has not provided independent proof of an external hack, leading users to demand an independent audit.
Next Steps: A Crucial Hearing for the Crypto Sector
A hearing is set to take place soon, where Zettai's revised plan for reimbursement will be reviewed. Many users fear that the plan may not meet the legal standards for protecting client funds.
The situation with WazirX and Zettai raises important questions about the legal status of crypto assets and the protection of users' rights amid corporate restructuring. The outcome of this legal case may set a precedent for property rights over digital assets in the future.
