SUMMARY
- WazirX allegedly moved $73 million worth of crypto following a $230 million security breach.
- CoinSwitch CEO Ashish Singhal revealed the transfers and has initiated legal action against WazirX to recover 2% of its funds.
- WazirX has been granted a four-month moratorium by the Singapore High Court as it restructures and seeks solutions.
Embattled cryptocurrency exchange WazirX allegedly moved over $73 million worth of crypto to rival exchanges Bybit and Kucoin following a security breach that led to the theft of $230 million, according to CoinSwitch CEO Ashish Singhal. The breach and subsequent transfers have added to the company’s challenges, as WazirX faces liabilities amounting to $546.5 million.
CoinSwitch, a competitor in the Indian crypto space, revealed that WazirX transferred $72.13 million to Bybit and $1.5 million to Kucoin after the breach. Singhal’s company holds a stake in WazirX, with Rs 12.4 crore in INR, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in other tokens still stuck on the platform.
While WazirX did not directly deny the claims, it questioned CoinSwitch’s transparency, urging it to offer users real-time tracking of proof of reserves and wallet addresses, a feature that WazirX has already implemented. The company spokesperson noted, “It shows how easy it is to build a dashboard but unfortunately [CoinSwitch] themselves haven’t built it for their customers.”
CoinSwitch has announced plans to take legal action against WazirX to recover 2% of its funds. WazirX is currently in the midst of restructuring, having been granted a four-month moratorium by the Singapore High Court. The moratorium provides WazirX temporary relief from legal proceedings while the company explores strategic options, including partnerships, recovering stolen assets, and potentially enabling users in urgent need of liquidity to exit faster.
WazirX reported that it lost about 45% of its crypto assets due to the breach. The exchange has since released data from 240,000 wallet addresses as part of an affidavit filed in Singapore, and is actively working to trace and recover stolen crypto. The firm’s restructuring plan aims to introduce revenue-generating products, seek capital infusion, and restore user confidence. Embattled cryptocurrency exchange WazirX allegedly moved over $73 million worth of crypto to rival exchanges Bybit and Kucoin following a security breach that led to the theft of $230 million,
