Indian crypto exchange CoinSwitch is taking legal action against rival exchange WazirX to recover over $9 million in funds trapped on WazirX’s platform following a $230 million hack. CoinSwitch, which operates as an exchange aggregator, announced on X that despite multiple attempts to resolve the issue directly, they have been unable to retrieve their assets, which include fiat currency, ERC20 tokens, and various cryptocurrencies.
While the trapped funds represent less than 1% of CoinSwitch’s total assets, the exchange has assured users that it is maintaining a 1:1 ratio for their holdings by leveraging its treasury reserves. CoinSwitch stated, “From the day of the incident, we have tried to be in constant touch with the WazirX team, seeking recovery of the funds that are stuck on their exchange. However, our efforts have not come to fruition, leaving us with no choice but to pursue legal action to recover the funds.”
In response, WazirX’s Founder and CEO, Nischal Shetty, posted on social media, asserting that all users, regardless of their size, would be treated fairly and that no side deals would be made.
In a related development, WazirX’s parent company, Zettai, has filed for a moratorium under Singapore’s Insolvency, Restructuring and Dissolution Act 2018. This legal move, filed with the High Court of Singapore, is intended to provide WazirX with temporary protection from debt collection as it works on a recovery and restructuring plan. A moratorium grants the company a legally binding pause in debt collection, allowing time for a viable recovery strategy to be implemented.
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