WazirX Hack Victims Plan Class-Action Lawsuit Against the Exchange

• WazirX’s post-hack woes have continued to pile up.
• Disgruntled hack victims have planned to sue the exchange.
• The victims seek damages and full restoration of crypto balances.

A group of victims of the July 18 multimillion-dollar hack on WazirX is planning to sue the cryptocurrency exchange in a class-action lawsuit to recover over INR 5 crores (about $600,000) in digital assets.

The development followed the exchange’s move to publish an official Proof of Reserves (POR) report on October 25, nearly two months after it filed a moratorium application with the Singapore High Court.

The disgruntled users said they would initiate legal action despite the exchange’s Singapore-based parent company securing a four-month temporary relief to focus on resolving the hack’s aftermath. The hack led to over $230 million in losses and left four million users stranded.

WazirX Users to File a Class-Action Lawsuit

According to a local report on October 26, 30 victims have retained Supreme Court lawyer Aman Reehan Khan to file the lawsuit with India’s National Consumer Disputes Redressal Commission (NCDRC) by mid-November.

Reehan Khan explained that the victims would initiate legal action because the agreement between users and WazirX was with Zanmai Labs Pvt. Ltd, an Indian-based company responsible for holding the exchange’s cash deposits.

“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),” the report quoted Khan as saying.

Noting that he expected more victims to join the lawsuit when it was filed, Khan said the legal action would seek the restoration of the entire cryptocurrency balance for withdrawal, not the 55% WazirX pledged in September.

Per the report, WazirX is already facing two other legal actions against it besides the upcoming lawsuit. This includes an August 28 case CoinSwitch co-founder Ashish Singhal filed against the exchange for its security lapses and an October 18 suit by an investor named Jaivir Bains, calling for an investigation into the $230 million hack.

Read about WazirX’s Proof of Reserves (POR) report:
WazirX Publishes Proof of Reserves Three Months After $230M Hack

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