Victims of the WazirX hack last July 2024 are now organizing a class action lawsuit. According to multiple sources, a group of victims is finalizing plans to sue India’s largest crypto exchange to recover more than $600,000 worth of crypto assets.
The latest development related to India’s biggest crypto hack, where more than $230 million worth of cryptocurrencies was stolen. According to the latest reports, a hacker or group of hackers has finished stealing the stolen funds using Tornado Cash.
WazirX Recovers, Faces Suits Ahead
The planned class action lawsuit was announced just days after WazirX published its official Proof of Reserves (POR) report. According to reports, legal action will be taken against WazirX’s Singapore-based parent company.
The announcement comes nearly two months after WazirX successfully applied for a four-month suspension in Singapore to focus on recovery and resolving issues and other hacking-related concerns.
In July, the popular crypto exchange was hit by a security breach, stealing more than $52 million in Ether and more than $100 million in Shiba Inu, among other crypto assets. According to the exchange, stolen funds made up 45% of their total reserves, based on the company’s June 2024 report.
Image: Business Today
Disgruntled Victims Will Sue Despite Suspension
Although WazirX’s parent company received a stay order, this did not stop a group of disgruntled victims from organizing a class action. About 30 victims contacted lawyer Aman Reehan Khan to represent the group and file a case with the National Consumer Disputes Redressal Commission (NCDRC) in November.
According to Khan, the victims plan to file a complaint because the user agreement with WazirX was with Zanmai Labs Pvt Ltd, which is the company that owns all the assets. Khan continues to question WazirX’s move to file for bankruptcy and restructuring in Singapore through its parent company.
More Wazir X Victims Expected to Follow
Khan expects more victims to come forward and join the class action lawsuit. He also explained that the suit aims to recover the full withdrawal crypto balance and not just the 55% WazirX was originally promised in September.
According to other reports, India’s WazirX is also facing two legal actions, including a complaint from CoinSwitch’s Ashish Singhal and an October 18 lawsuit filed by Javir Bains, who also called for an investigation into the hack.
In addition to the class action lawsuit, other campaigns aim to seize Indian crypto exchange accounts. For example, on Twitter/X, there is a profile “Justice for WazirX Users,” which campaigns for awareness and encourages more victims to come forward and file complaints in turn.
Featured image from Pixabay, chart from TradingView
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