In a startling revelation, CoinSwitch CEO Ashish Singhal has accused the WazirX exchange of transferring approximately $75 million in user funds to other global exchanges without user notification, following a significant hack on July 18. This allegation has sparked a legal battle, with CoinSwitch filing a lawsuit against WazirX in Singapore to recover the frozen funds.
Singhal claims that, after the cyberattack that resulted in a staggering ₹2,000 crore loss, WazirX secretly moved over $75 million to platforms such as Bybit and KuCoin, leaving affected users uninformed about the status of their funds. This revelation comes as WazirX grapples with the fallout from the cyberattack, now compounded by legal challenges from CoinSwitch, another prominent Indian cryptocurrency exchange.
Legal Action and Transparency Efforts
In a bid to retrieve their funds, CoinSwitch has initiated legal proceedings against WazirX for freezing its assets on the exchange. As part of its efforts to enhance transparency, CoinSwitch has launched a dedicated dashboard designed to monitor these suspicious fund transfers, providing investors with insight into the movement of funds.
According to the dashboard, CoinSwitch’s investigation uncovered that approximately $72.13 million of WazirX’s digital assets were transferred to Bybit, while $1.5 million was directed to KuCoin. This tool aims to shed light on WazirX’s undisclosed transactions and bring greater awareness to investors regarding the ongoing situation.
WazirX’s Wallet Disclosure
In its legal filings, WazirX disclosed an extensive list of 240,000 wallet addresses in an affidavit submitted to the High Court of Singapore. However, this overwhelming amount of data presents challenges for many Indian users who may not yet be familiar with the intricacies of cryptocurrency wallets.
The dataset includes numerous wallets displaying minimal or zero balances, complicating efforts for the average investor to navigate and comprehend the information provided.
Dashboard Findings: An Overview
CoinSwitch’s newly launched dashboard has already scanned a significant portion of the disclosed wallet addresses, revealing that nearly 100,000 of these have balances under $10, while about 18,000 are completely empty. While these figures may seem minor on an individual level, the overall magnitude of WazirX’s fund transfers raises significant concerns within the cryptocurrency community.
Singhal’s findings indicate that the movement of millions to Bybit and KuCoin occurred shortly after the cyberattack, suggesting a potential effort to secure assets in response to increasing scrutiny.
As CoinSwitch continues to pursue legal recourse and enhance transparency in the cryptocurrency landscape, the unfolding drama surrounding WazirX serves as a reminder of the vulnerabilities and complexities inherent in digital asset management.
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