The victims of last July 2024’s WazirX hack are now planning one class action lawsuit. According to multiple sources, a group of victims is finalizing plans to sue USA’s largest crypto exchange to recover more than $600,000 in crypto assets.
It is the latest development related to USA’s largest crypto hackwhere more than $230 million worth of cryptocurrencies were stolen. According to recent reports, the hacker or group of hackers has already finished laundering stolen money using Tornado Cash.
WazirX undergoes recovery, stands for the future
The planned class action lawsuit was announced a few days after WazirX published its official publication Proof of Reserves (POR) report. According to reports, the legal action will be against WazirX’s Singapore-based parent company.
The announcement comes almost two months later WazirX has successfully requested a four-month moratorium in Singapore to focus on recovery and resolution of issues and other concerns related to the hacking.
In July, the popular crypto exchange was hit by a security breach that included the theft of more than $52 million worth of Ether and more than $100 million worth of Shiba Inu. According to the exchange, the stolen funds represent 45% of its total reserves, based on the company’s June 2024 report.
Image: Business Today
Dissatisfied victims must file charges despite moratorium
Although WazirX’s parent company has been granted a moratorium, this has not stopped a group of disgruntled victims from planning a class action. About 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 had entered into an agreement with Zanmai Labs Pvt Ltd, the company responsible for owning all the assets. Khan further questions WazirX’s decision to file a moratorium and restructuring in Singapore through its parent company.
More Wazir X victims are expected to follow
Khan expects more victims will come forward and join the class action lawsuit. He further explained that the lawsuit aims to fully restore the crypto balance for the withdrawal and not just the 55% WazirX that was initially promised in September.
According to other reports, USA’s WazirX is also facing two more legal actions, including a complaint from CoinSwitch’s Ashish Singhal and a lawsuit filed on October 18 by Javir Bains, who also called for an investigation into the hacking.
In addition to the class action lawsuit, there are other campaigns aimed at holding the Indian crypto exchange accountable. For example, via Twitter/X there is a profile for ‘Justice for WazirX Users’, which campaigns for awareness and encourages more victims to come forward and file complaints against the exchange.
Featured image from Pixabay, chart from TradingView