WazirX Hack Victims Plan Lawsuit to Recover Lost Funds

Victims of the WazirX hack in July 2024 are organizing a class-action lawsuit to reclaim over $600,000 in lost crypto assets. This follows India’s largest crypto hack, where more than $230 million in cryptocurrencies were stolen. Reports indicate that the hacker has already laundered the funds through Tornado Cash.

The lawsuit comes shortly after WazirX’s release of its Proof of Reserves (POR) report, targeting its Singapore-based parent company. The exchange recently obtained a four-month moratorium in Singapore to focus on recovery and addressing issues related to the hack.

In the July breach, hackers made away with over $52 million in Ether and $100 million in Shiba Inu, among other digital assets. These losses accounted for 45% of WazirX’s total reserves, as per the company’s June 2024 data. Despite WazirX's ongoing recovery efforts, a group of disgruntled users is pushing forward with legal action.

Around 30 affected users have enlisted lawyer Aman Reehan Khan to lead the suit, which they plan to file with the National Consumer Disputes Redressal Commission (NCDRC) by November. Khan emphasizes that the user agreement was with Zanmai Labs Pvt Ltd, which manages user assets, and he questions WazirX’s decision to seek a moratorium and restructuring in Singapore.

Khan expects that more victims will join the lawsuit, which aims to fully restore users' crypto balances, not just the 55% repayment WazirX offered in September. This legal challenge is part of a broader effort to hold WazirX accountable for the breach and to ensure a fair outcome for those affected.

Besides the class-action suit, WazirX faces additional legal troubles. These include a complaint from Ashish Singhal of CoinSwitch and an October 18 lawsuit filed by Javir Bains, who is demanding a thorough investigation into the hack. Alongside these legal actions, social media campaigns like “Justice for WazirX Users” are gaining momentum, urging more victims to come forward and seek redress.

As the legal pressures build, the situation at WazirX underscores the challenges that crypto exchanges face in maintaining user trust and security. The outcomes of these cases could potentially shape the future handling of similar incidents in the industry.