Gairika Mitra
Indian cryptocurrency platform CoinSwitch has initiated legal action against rival WazirX. This comes at a time when WazirX is struggling with the aftermath of a $230 million security breach, which happened last month.
CoinSwitch filed the lawsuit on Wednesday leaving the two players grappling over industry practices and competitive positioning.
An X post by CoinSwitch explained that despite its numerous efforts to seek an update on the recovery of the stolen funds, there hasn’t been any solution yet.
“It’s been over a month since WazirX, a major crypto exchange operating in India, claimed that a cyber attack on their platform led to the theft of $230 million (~ Rs 2000 cr) worth of funds.
“We have attempted to be in regular touch with WazirX since the day of the incident but have not been able to reach a solution to recover the funds that are stuck on their platform. Further, their announcement earlier this week is unclear about how a full recovery would happen.
“So we are now taking steps, including legal action, detailed later in this thread to recover the funds stuck on WazirX,” the platform stated.
This legal battle comes in the middle of a crucial juncture for both companies, albeit different in nature in comparison. CoinSwitch has made strides recently on its platform with its latest discoveries, such as a new meme coin listing. WazirX, on the other hand, has been battling a crisis while attempting to retrieve the stolen assets.
Recently, however, WazirX took a major step to address its fallout from the cyberattack that happened last month by filing a moratorium on Wednesday in the Singapore High Court. The move was made under the Insolvency, Restructuring and Dissolution Act 2018. It aims to provide the necessary framework for restructuring the platform’s crypto liabilities through a Scheme of Arrangement.
WazirX users could use the moratorium to develop and implement plans to help manage and restructure its financial obligations. It is also hosting a town hall in the upcoming week to explain the key features of the moratorium.
Binance has acquired WazirX, however it maintained a distance from its dealings and partnerships in 2022.
With the ongoing lawsuit, industry stakeholders and regulators alike are expected to monitor it closely as it reflects the growing pains of a maturing market grappling with legal and ethical challenges.
Read More
- Indian Crypto Exchange WazirX Rolls Out Partial INR Withdrawals
- WazirX Files for Moratorium with Singapore High Court Following Cyberattack
- India’s WazirX Exchange Breached, Hacker Siphons Off $230M in Crypto
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications 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.
