Lawrence Damilola
CoinSwitch CEO Ashish Singhal has claimed that WazirX transferred approximately $73.6 million in users’ crypto assets to global exchanges Bybit and KuCoin following a $234 million cyber attack in July.
Singhal raised the accusation on Monday as CoinSwitch introduced a public dashboard designed to track wallet activities in response to WazirX’s recent wallet disclosures.
WazirX recently filed an affidavit with the Singapore High Court, disclosing over 240,000 wallet addresses as part of its ongoing debt restructuring process. Singhal explained that CoinSwitch holds both fiat and crypto assets with WazirX, but the exchange “illegally” suspended withdrawals. In response, CoinSwitch used its own treasury to ensure users’ funds were covered.
Making sense of WazirX’s wallet disclosure for users
— Ashish Singhal (@ashish343) October 21, 2024
Crypto exchange WazirX — which allegedly faced a cyberattack in July 2024 — has released over 240,000 wallet addresses as part of an affidavit they filed in the High Court of Singapore.
These many wallet addresses can be… pic.twitter.com/QfaEmuQXUZ
CoinSwitch Legal Dispute Over Trapped Funds
CoinSwitch mounted legal action against WazirX in July, revealing that it has $9 million in trapped funds with the exchange. According to Singhal, the amount represents less than 1% of CoinSwitch’s total assets. The company has now made its tracking dashboard public to address transparency concerns. “Now, we are making that dashboard publicly available in the hope that it will be of some help to crypto investors at large,” Singhal said.
He further stated that CoinSwitch had identified the movement of $72.13 million worth of crypto to Bybit and $1.5 million to KuCoin after the cyber attack.
WazirX CEO Responds to Accusations
WazirX CEO Nischal Shetty acknowledged the funds’ transfer to other exchanges but clarified that the movement was unrelated to trading. “Funds were moved to some exchanges because we are still onboarding a custodian,” Shetty said on X. “This process is taking longer than expected, and we need to be thorough in our assessment and carefully explore all options.”
POR work is ongoing. Team is aiming to complete it asap so we can share it with everyone.
— Nischal (Shardeum) 🔼 (@NischalShetty) October 22, 2024
There have been false claims circulating that funds were moved to exchanges to trade!
Funds were moved to some exchanges because we are still in the process of onboarding a custodian. This…
A WazirX spokesperson criticized CoinSwitch for publishing a dashboard with WazirX’s wallet addresses, noting that it had yet to demonstrate the same level of transparency regarding its own reserves. “It shows how easy it is to build a dashboard, but unfortunately, [CoinSwitch] themselves haven’t built it for their customers who have been demanding it for many years now.”
The spokesperson urged CoinSwitch to implement a real-time Proof of Reserves (POR) and provide its wallet addresses along with a dashboard. They stressed that this level of transparency is crucial for the industry and called on CoinSwitch to “make it real-time and share all of their wallet addresses too.”
Read More
- Binance Denies Responsibility as WazirX Hack Fallout Intensifies
- Blockchain Tracks North Korean Hackers’ Movement of Funds Following WazirX Incident
- Indian Crypto App CoinSwitch Files Lawsuit Against WazirX: A New Chapter in Crypto Rivalries
Lawrence does not hold any crypto asset. 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.
