Victims of the WazirX hack last July 2024 are now planning to Class action. According to multiple sources, a group of victims is finalizing plans to sue India’s largest cryptocurrency exchange to recover more than $600,000 in cryptocurrency assets.
It is the latest development related to the largest in India Encryption hackMore than $230 million worth of cryptocurrencies were stolen. According to recent reports, the hacker or group of hackers has already completed the laundering of the stolen funds using Tornado Cash.
WazirX is undergoing a recovery process, and the faces are ready to move forward
The planned class action lawsuit was announced a few days after WazirX published its official announcement Proof of Reserves Report (POR).. According to reports, legal action will be taken against WazirX’s Singapore-based parent company.
This announcement comes after nearly two months MinisterX I successfully applied for a four-month suspension in Singapore to focus on recovery and resolving other issues and concerns associated with the hacking.
In July, the popular cryptocurrency exchange suffered a security breach, resulting in the theft of more than $52 million in ether and more than $100 million in Shiba Inu, among other crypto assets. According to the stock exchange, the stolen funds represent 45% of its total reserves, based on the company’s June 2024 report.
Image: Business Today
Disgruntled victims file lawsuit despite moratorium
Although WazirX’s parent company was granted a moratorium, that did not stop a group of disgruntled victims from planning a class action. About 30 victims approached lawyer Aman Rehan Khan to represent the group and filed the case 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 holding all the assets. Khan also questions WazirX’s move to introduce a moratorium and restructuring in Singapore through its parent company.
More Wazir X victims are expected to follow
Khan expects more victims to come forward and join the class action lawsuit. He also clarified that the lawsuit aims to restore the entire withdrawal cryptocurrency balance and not just the 55% that WazirX initially promised in September.
According to other reports, India’s WazirX is also facing two other legal actions, including a complaint from CoinSwitch’s Ashish Singhal and an October 18 lawsuit filed by Javir Bains, who also called for an investigation into the hack.
In addition to the class action, other campaigns aim to hold the Indian cryptocurrency exchange accountable. For example, on Twitter/X, there is a profile for “Justice for WazirX Users”, which conducts awareness campaigns and encourages more victims to come out and file complaints against the exchange.
Featured image from Pixabay, chart from TradingView
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