While Indian cryptocurrency exchange WazirX is grappling with a massive $230 million hacking attack, rival exchange CoinSwitch is taking legal action to recover more than $9 million in stranded funds.
CoinSwitch, which operates an exchange aggregator, published on X that it has significant assets stranded on the WazirX platform, including fiat currencies, ERC20 tokens and other cryptocurrencies. Despite repeated attempts to reach an agreement with WazirX, CoinSwitch has been unable to recover the stranded funds.
The exchange further revealed that the affected funds represent a small portion of its total assets, with less than 1% directly affected by the cyberattack. To ensure the stability of its platform and maintain a 1:1 ratio for user assets, CoinSwitch uses its own treasury reserves.
“From the day of the incident, we tried to be in constant contact with the WazirX team in an effort to recover the funds that were stuck on their exchange. However, our efforts have been unsuccessful, leaving us with no choice but to take legal action to recover the funds.”
WazirX founder and CEO Nischal Shetty responded to CoinSwitch on social media shortly after the lawsuit became public. Shetty wrote on X that “they will treat all users fairly – big and small, without any side deals.”
WazirX applies for a moratorium in the Singapore High Court under the Insolvency Act
WazirX also announced that its parent company Zettai has applied to the Supreme Court of Singapore for a moratorium under Section 64 of the Insolvency, Restructuring and Dissolution Act 2018 to facilitate its intention to restructure its liabilities under the arrangement.
Amoratorium is a legally binding break in the right to collect debts from a company. This pause protects the debtor while a resolution plan is agreed upon and implemented.
