CoinSwitch sues WazirX to recover Rs 81 crore in trapped funds

CoinSwitch, crypto exchange aggregating platform from India, has filed a legal case against WazirX to recover funds that it held in WazirX wallets before $240 million hack. 

According to platform, two per cent of its funds are stuck with WazirX which includes Rs 12.4 crore in INR, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in or tokens. 

“This amounts to about 2 per cent of all funds of CoinSwitch. According to WazirX claim, only ERC20 tokens were impacted in alleged cyber attack. That translates to less than 1 per cent of total CoinSwitch funds,” CoinSwitch wrote in a blog. 

In one of biggest crypto hacks of recent times, WazirX lost nearly 45 per cent of its total assets caused by a breach in its multi-signature wallet. platform immediately halted all tring on platform after confirming news and yet, no crypto withdrawals on platform are allowed. 

From August 26, exchange has partially opened its INR withdrawals for users.

“From day of incident, we have tried to be in constant touch with WazirX team, seeking recovery of funds that are stuck on ir exchange. However, our efforts have not come to fruition, leaving us with no choice but to pursue legal action to recover funds,” CoinSwitch said.

However, CoinSwitch ensured its customers that all of ir funds are safe with platform as y maintain at least a 1:1 treasury ratio for every user’s holding. 

“We want to assure that all user funds are safe and secure on CoinSwitch. Given unprecedented situation, right after alleged incident, we utilized our own treasury to make sure that we maintain at least a 1:1 ratio for every user’s crypto holding on CoinSwitch.” 

Under section 64 of Insolvency, Restructuring and Dissolution Act 2018 in Singapore, WazirX’s related entity Zettai Pte has filled for a moratorium to allow exchange some time to restructure its liabilities.