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WazirX Hack Victims File Class Action Lawsuit Against Crypto Exchange

WazirX Hack Victims File Class Action Lawsuit Against Crypto Exchange

HappyCoinNewsHappyCoinNews2024/10/27 08:22
By:HappyCoinNews

Thirty victims of the WazirX exploit are preparing to file a class action lawsuit against the crypto exchange with the National Consumer Disputes Redressal Commission in India. The victims want to recover their assets worth more than 500 million rupees (around $600) and claim that the platform violated several regulatory requirements.

Let us recall that one of the largest exploits on the WazirX crypto exchange this year occurred on July 18. As a result of the hack, the hacker managed to withdraw almost 45% of users' funds from the platform's hot wallet; at that time, the stolen assets were valued at $235 million.

The exploit affected around 4 million WazirX customers, forcing the exchange to apply to Singapore's regulator to begin a restructuring process. This is a necessary step before a company can declare bankruptcy. As a result, the crypto exchange managed to secure a four-month moratorium during which no lawsuits can be filed against the platform.

It is known that the class action lawsuit of users against WazirX will be filed in court by mid-November. The interests of the victims will be represented by the lawyer of the Supreme Court of India Aman Rehaan Khan. According to his statements, the decision of the exchange to apply for restructuring of assets in Singapore through its parent company Zettai Pte Ltd was not legally justified.

Zettai was never a party to the user agreement, Khan said.

Almost a month after the attack, WazirX announced that it would allow customers to withdraw 55% of their crypto assets and 66% of their cash deposits. At the same time, users learned that a third of their capital was frozen due to legal disputes and investigations.

The lawyer said that users not being informed that their funds had been frozen by a third party is another violation that requires compensation and fines. Khan expects more victims of the WazirX hack to join him by the time the lawsuit is filed.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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