CoinSwitch takes legal action against WazirX following $230-mn hack

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Crypto exchange aggregator CoinSwitch said that it is taking legal action against WazirX to recover 2 percent of its funds that are stuck with the crypto exchange after its $230-million hack last month.

CoinSwitch said it cumulatively held Rs 12.4 crore in INR, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in other tokens on WazirX.

“This amounts to about 2% of all funds of CoinSwitch. According to the WazirX claim, only ERC20 tokens were impacted in the alleged cyber attack. That translates to less than 1 % of total CoinSwitch funds,” CoinSwitch said on a blogpost.

WazirX lost around 45 percent of its holding assets in a massive security breach in one of its multisig wallets on July 18. Post that it has paused withdrawals and trading of crypto on its platform. WazirX had only partially opened up INR withdrawals earlier this week.

“From the day of the incident, we have tried to be in constant touch with the WazirX team, seeking recovery of the funds that are stuck on their exchange. However, our efforts have not come to fruition, leaving us with no choice but to pursue legal action to recover the funds,” CoinSwitch said.

On the other hand, WazirX said on August 28, that it has filed an application with a Singapore court through its related entity Zettai Pte, seeking a moratorium under section 64 of the Insolvency, Restructuring and Dissolution Act 2018, to allow it some time to restructure its liabilities.