WazirX Faces Legal Challenges Amid $230 Million Crypto Theft Investigation

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CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2024/08/08/wazirx-faces-legal-challenges-amid-230-million-crypto-theft-investigation/ on 2024-08-08. Article ID: SD9889Ta82c103b. Author: Gairika Mitra. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2024/08/08/wazirx-faces-legal-challenges-amid-230-million-crypto-theft-investigation/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.

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Indian cryptocurrency firm WazirX, its infrastructure partner Liminal, and other associated entities are presently embroiled in legal challenges following a $230 million crypto asset theft. The most recent one involves a petition filed by a legal trainee at the Nаtional Company Law Tribunal (NCLT) in Indore, India.

The petition, filed by a legal intern named Gauransh Vyas, reportedly listed WazirX’s parent company Zanmai Labs, Liminal, WazirX founders Sameer Mhatre and Nischal Shetty, and many more as respondents. The Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Corporate Affairs are also included in the petition.

Vyas reportedly filed the petition under Section 213(b) and Section 221 of the Companies Act, 2013 in Indore, India. Under Section 213(b), any person can ask for an investigation into a company’s affairs, especially if they believe the company engages in fraudulent activities. Section 221 states that the one filing the petition can ask for the company’s asset to be frozen after an inquiry and investigation.

A WazirX spokesperson confirmed with the The Shib Daily that they are awаre of the petition filed. “We are aware of the petition filed against us before the NCLT, Indоre and we are taking necessary legal action. Since it is an ongoing legal proceeding, we cannot discuss the details of the petition. We will respond as per the prescribed procedure under law before the NCLT. The NCLT will decide the weight of the petition on legal grounds,” the spokesperson said.

The WazirX team filed a police complaint on Tuesday and revealed that they want the culprits of this theft to be nabbed and the funds recovered.

Just last month, the exchange made headlines when it faced a security breach and lost more than $230 million. It later offered a $23 million bounty so they could get hold of the stolen assets.

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GAIRIKA

Gairika is a cryptocurrency journalist with a focus on Bitcoin and blockchain technology.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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