Hacked WazirX Users Take Legal Action: Class Action Lawsuit in Progress

Victims of the WazirX hack last July 2024 are now planning a class action lawsuit. According to multiple sources, a group of victims is finalizing plans to sue India’s largest crypto exchange to recover more than $600,000 in crypto assets.

It is the latest development related to India’s largest. crypto hackingin which more than $230 million in cryptocurrencies were stolen. According to recent reports, the hacker or hacker group has already completed the laundering of stolen funds using Tornado Cash.

WazirX on recovery, faces future lawsuits

The planned class action lawsuit was announced a few days after WazirX published its official report. Reserve Test Report (POR). The legal action will reportedly be against WazirX’s Singapore-based parent company.

The announcement comes almost two months later WazirX It successfully applied for a four-month moratorium in Singapore to focus on recovery and resolve issues and other concerns associated with piracy.

In July, the popular crypto exchange was hit by a security breach, stealing over $52 million worth of Ether and over $100 million worth of Shiba Inu, among other crypto assets. According to the exchange, the stolen funds represent 45% of its total reserves, according to the company’s June 2024 report.

Image: Business Today

Disgruntled victims will sue despite moratorium

Although WazirX’s parent company was granted a moratorium, this did not stop a group of disgruntled victims from planning a class-action lawsuit. Around 30 victims contacted lawyer Aman Reehan Khan to represent the group and file the complaint before the National Consumer Disputes Redressal Commission (NCDRC) by November.

According to Khan, the victims plan to file a complaint because the agreement between the users and WazirX was with Zanmai Labs Pvt Ltd, the company responsible for owning all the assets. Khan further questions WazirX’s decision to file for a moratorium and restructuring in Singapore through its parent company.

The total crypto market capitalization is currently $2.2 trillion. Chart: TradingView

More Wazir X victims expected to follow

Khan hopes more victims will come forward and join the class action lawsuit. He further explained that the lawsuit aims to restore the crypto balance for withdrawal in full and not just the 55% that WazirX initially promised in September.

According to other reports, India’s WazirX is also facing two more legal actions, including a complaint from CoinSwitch’s Ashish Singhal and a lawsuit filed on October 18 by Javir Bains, who also called for an investigation into the hack.

In addition to the class action lawsuit, other campaigns aim to hold the Indian crypto exchange accountable. For example, on Twitter/X, there is a profile for “Justice for WazirX Users”, which campaigns for awareness and encourages more victims to come out and file complaints against the exchange.

Featured image from Pixabay, TradingView chart

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