A group of victims is preparing a lawsuit against crypto exchange WazirX following the $235 million hack.

Thirty victims of the July 18 hack on WazirX, which saw roughly 45% of user funds drained from the platform’s hot wallet, are preparing to file a class-action lawsuit with the National Consumer Disputes Redressal Commission in India, according to a local media report.

The victims seeking to recover crypto assets worth over INR 5 crores (around $600,000) argue that the exchange acted outside its legal boundaries.

The $235 million hack impacted roughly 4 million users, compelling the exchange to seek a Scheme of Arrangement in Singapore, a restructuring process under local insolvency laws. WazirX managed to secure a four-month moratorium, temporarily halting any legal claims against it.

The lawsuit, set to be filed by mid-November, hinges on the claim that WazirX’s agreement with its users was through its Indian entity, Zanmai Labs Pvt. Ltd.

Victims weren’t informed of frozen cash balances

Supreme Court lawyer Aman Rehaan Khan is representing the victims.

Khan argues that the exchange’s decision to file for asset restructuring in Singapore through its parent company, Zettai Pte Ltd, was not legally justified. 

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

Singapore-based Zettai, oversees the exchange’s cryptocurrency assets, while Zanmai Labs handles cash deposits for Indian users. Initially, Zanmai was in charge of WazirX’s operations in India, but it’s now fully owned by Zettai. According to WazirX’s website, Zettai took over the platform’s assets following an Go to Source to See Full Article
Author: Rony Roy