SUMMARY
- CoinSwitch has filed a lawsuit against WazirX to recover Rs 81 crore stuck due to a reported cyber attack on the WazirX platform.
- Despite efforts by CoinSwitch to negotiate a resolution, the two exchanges have failed to reach an agreement, prompting legal action.
- CoinSwitch assures that its exposure to WazirX does not affect its user balances or its ability to serve India’s crypto users.
Indian cryptocurrency exchange CoinSwitch has initiated legal proceedings against its rival platform WazirX to recover funds that remain stuck following a reported cyber attack on WazirX.
CoinSwitch, led by CEO Ashish Singhal, revealed that funds amounting to Rs 81 crore ($9.7 million) are stuck on the Nischal Shetty-run WazirX platform. The blocked funds include Rs 12.4 crore in Indian rupees, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in other tokens, which represents approximately 2% of CoinSwitch’s total assets.
The dispute began after WazirX, one of India’s largest crypto exchanges, reported a cyber attack that allegedly resulted in the theft of $230 million (Rs 2,000 crore). According to WazirX, the attack impacted only ERC20 tokens, which account for less than 1% of CoinSwitch’s total holdings. Despite continuous efforts by CoinSwitch to engage with WazirX and seek a resolution, the two companies have failed to reach an agreement on the recovery of the funds.
In a public statement on X (formerly Twitter), CoinSwitch expressed frustration over the lack of progress and clarity from WazirX regarding the recovery process. “We have attempted to be in regular touch with WazirX since the day of the incident but have not been able to reach a solution to recover the funds that are stuck on their platform,” CoinSwitch stated. “So we are now taking steps, including legal action, to recover the funds stuck on WazirX.”
WazirX, meanwhile, has filed for a moratorium in Singapore’s High Court to facilitate its restructuring efforts. CoinSwitch clarified that its exposure to WazirX does not impact its user balances or its capability to serve the Indian cryptocurrency market. The company maintains a small portion (7%) of its liquidity on third-party exchanges to ensure uninterrupted trading services for its users.
