The 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 the plans to sue India’s largest crypto exchange to recover more than $600,000 in crypto assets.
It’s the latest development related to India’s biggest crypto hack, in which more than $230 million worth of cryptocurrencies were stolen. According to recent reports, the hacker or group of hackers has already completed laundering stolen funds using Tornado Cash.
WazirX Undergoing Recovery, Faces Suits Ahead
The planned class-action lawsuit was announced a few days after WazirX published its official Proof of Reserves (POR) report. According to reports, the legal action will be against WazirX’s Singapore-based parent company.
The announcement comes nearly two months after WazirX successfully filed for a four-month moratorium in Singapore to focus on recovery and resolving issues and other concerns associated with the hacking.
In July, the popular crypto exchange was hit by a security breach, stealing over $52 million in Ether and over $100 million in Shiba Inu, among other crypto assets. According to the exchange, the stolen funds account for 45% of its total reserves, based on the company’s June 2024 report.
Image: Business Today
Disgruntled Victims To Sue Despite Moratorium
Although WazirX’s parent company has earned a moratorium, this didn’t stop a group of disgruntled victims from planning a class action. Around 30 victims have contacted lawyer Aman Reehan Khan to represent the group and file the lawsuit with the National Consumer Disputes Redressal Commission (NCDRC) by November.
According to Khan, the victims plan to file a complaint because the users’ and WazirX’s agreement was with Zanmai Labs Pvt Ltd, the company responsible for holding all assets. Khan further questions WazirX’s move to file a moratorium and re-structuring in Singapore through its parent company.
More Wazir X Victims Expected To Follow
Khan expects more victims to come forward and join the class-action lawsuit. He further explained that the suit aims to restore the crypto balance for the withdrawal entirely and not just the 55% WazirX initially promised in September.
According to other reports, India’s WazirX is also facing two more legal actions, including a complaint from Ashish Singhal of CoinSwitch and an October 18th suit filed by Javir Bains, who also called for an investigation into the hacking.
In addition to the class action lawsuit, other campaigns aim to hold the Indian crypto exchange to account. For example, over Twitter/X, there’s 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, chart from TradingView
