WazirX Hack Victims Organize Class-Action Lawsuit for $600,000 Recovery
Victims of the WazirX hack in July 2024 are initiating a class-action lawsuit to recover over $600,000 in lost crypto assets. This incident marks India’s largest crypto hack, resulting in the theft of more than $230 million in cryptocurrencies. Reports indicate that the hacker has laundered the stolen funds via Tornado Cash.
The lawsuit follows WazirX’s release of its Proof of Reserves (POR) report, which targets its Singapore-based parent company. The exchange received a four-month moratorium in Singapore to focus on recovery and addressing issues related to the hack.
During the July breach, hackers stole over $52 million in Ether and $100 million in Shiba Inu, among other digital assets. These losses represented 45% of WazirX’s total reserves, according to the company’s June 2024 data. Despite ongoing recovery efforts, a group of disgruntled users is pursuing legal action.
Around 30 affected users have engaged lawyer Aman Reehan Khan to lead the lawsuit, which is set to be filed with the National Consumer Disputes Redressal Commission (NCDRC) by November. Khan points out that the user agreement is with Zanmai Labs Pvt Ltd, which manages user assets, and questions WazirX’s decision to seek a moratorium and restructuring in Singapore.
Khan anticipates more victims will join the lawsuit, aiming to fully restore users' crypto balances, rather than accepting the 55% repayment WazirX offered in September. This legal action seeks to hold WazirX accountable for the breach and ensure a just outcome for those affected.
In addition to the class-action suit, WazirX faces further legal challenges. These include a complaint from Ashish Singhal of CoinSwitch and an October 18 lawsuit filed by Javir Bains, who demands a thorough investigation into the hack. Social media campaigns like “Justice for WazirX Users” are also gaining traction, encouraging more victims to come forward and seek redress.
As legal pressures mount, WazirX's situation highlights the difficulties that crypto exchanges face in maintaining user trust and security. The outcomes of these cases could significantly influence how similar incidents are managed in the future.