CoinSwitch Files Lawsuit Against WazirX to Retrieve $9 Million in Frozen Assets
In the wake of the significant $230 million hack affecting Indian crypto exchange WazirX, its competitor CoinSwitch is taking legal steps to recover over $9 million in frozen assets.
CoinSwitch, which functions as an exchange aggregator, announced on X that it has a considerable amount of assets locked on WazirX’s platform, including fiat currency, ERC20 tokens, and various cryptocurrencies.
Despite numerous attempts to resolve the issue with WazirX, CoinSwitch has yet to retrieve the trapped funds.
The exchange also noted that the affected assets constitute a minor fraction of its overall holdings, with less than 1% directly impacted by the cyber incident. To maintain platform stability and uphold a 1:1 ratio for user assets, CoinSwitch is leveraging its own treasury reserves.
CoinSwitch stated:
Since the day of the incident, we have made continuous efforts to communicate with the WazirX team in hopes of recovering the funds that are currently trapped on their exchange. Unfortunately, our attempts have been unsuccessful, forcing us to consider legal action to retrieve the funds.
Nischal Shetty, the Founder and CEO of WazirX, responded on social media to CoinSwitch shortly after the lawsuit became public.
On X, Shetty stated that they "will treat all users fairly—regardless of size, with no side deals."
WazirX Seeks Moratorium in Singapore High Court Under Insolvency Act
WazirX has revealed that its parent company, Zettai, has submitted a request to the High Court of Singapore for a moratorium in accordance with section 64 of the Insolvency, Restructuring and Dissolution Act 2018. This move aims to support its plans to restructure its liabilities through a scheme of arrangement.
