In the wake of the significant WazirX hack that occurred in July 2024, victims are banding together to file a class-action lawsuit aimed at recovering over $600,000 in lost crypto.
This incident is notable as it marks one of the largest crypto hacks in India, with hackers making off with more than $230 million in various digital currencies. Reports suggest that the stolen funds have already been funneled through Tornado Cash, complicating recovery efforts.
The lawsuit follows WazirX’s recent release of its Proof of Reserves report, which has drawn attention to its parent company based in Singapore. The exchange has also secured a four-month moratorium in Singapore to focus on recovery and address the fallout from the hack.
During the breach, hackers stole over $52 million in Ether and $100 million in Shiba Inu, among other assets, which represented a staggering 45% of WazirX’s total reserves as of June 2024. While WazirX is working on recovery, a group of affected users is determined to pursue legal action.
Approximately 30 users have enlisted the help of lawyer Aman Reehan Khan to spearhead the lawsuit, which they plan to submit to the National Consumer Disputes Redressal Commission (NCDRC) by November.
Khan highlights that the user agreement was with Zanmai Labs Pvt Ltd, the entity responsible for managing user assets, and he questions WazirX’s choice to seek a moratorium and restructuring in Singapore.
Khan anticipates that more victims will join the lawsuit, which seeks to fully restore users’ crypto balances rather than accept the 55% repayment WazirX proposed in September.
