WazirX Still Trying to Recover From July Hack, Hit With Lawsuit From Victims

In July, WazirX, a prominent cryptocurrency exchange in India, experienced a significant security breach that resulted in the theft of over $52 million in Ether and more than $100 million in Shiba Inu, among other assets.

According to the company's report, these stolen funds represent 45% of WazirX's total reserves.

In response to this incident, victims are now organising a class-action lawsuit to reclaim more than $600,000 in lost cryptocurrency.

This legal action is part of the fallout from India’s largest crypto hack, which saw over $230 million in cryptocurrencies stolen, leaving four million users unable to access their funds.

Reports indicate that the hackers have already laundered the stolen assets using Tornado Cash.

The lawsuit was announced shortly after WazirX released its official Proof of Reserves (POR) report on 25 October.

The plaintiffs plan to target WazirX's Singapore-based parent company, following the exchange's recent filing for a four-month moratorium in Singapore to address recovery and related concerns stemming from the hack.

WazirX Victims Step Forth in Lawsuit

Despite WazirX's parent company securing a moratorium, a group of aggrieved victims is moving forward with a class-action lawsuit.

Approximately 30 affected users have enlisted the services of Supreme Court lawyer Aman Reehan Khan, who will represent them in filing a complaint with the National Consumer Disputes Redressal Commission (NCDRC) by November.

Khan highlights that the victims' agreement was with Zanmai Labs Pvt Ltd, the entity responsible for managing all assets.

Khan explained:

“It cannot, therefore, be justifiable in law that WazirX went and filed for a legal resolution and restructuring of its assets in Singapore through Zettai Pte Ltd (WazirX's parent firm).”

He questions WazirX's decision to seek a moratorium and restructuring in Singapore via its parent company.

Khan anticipates that additional victims will join the lawsuit, which aims to recover the full crypto balances for withdrawal rather than the 55% WazirX initially promised in September.

Furthermore, WazirX is facing two additional legal challenges: a complaint filed by Ashish Singhal of CoinSwitch on 28 August and another suit initiated by Javir Bains on 18 October, which calls for an investigation into the hacking incident.

Alongside the class-action effort, various initiatives are emerging to hold the Indian crypto exchange accountable.

One notable campaign on X (formerly known as Twitter), titled "Justice for WazirX Users," seeks to raise awareness and encourages more victims to come forward and file their grievances against the exchange.

Its latest post on 27 October enquired if anyone is tracking the WazirX hacker post on Tornado Cash.