CoinSwitch Alleges WazirX Moved Crypto Worth $73 Mn Post Data Breach

CoinSwitch’s cofounder Ashish Singhal has reportedly alleged WazirX of transferring over $73 Mn in cryptocurrency to other exchanges, including $72.13 Mn to Bybit and $1.5 Mn to Kucoin.

As per Business Standard, CoinSwitch’s Singhal slammed WazirX for its handling of the situation, stating that the transfers to other exchanges raised concerns about the platform’s financial stability. 

The report further pointed out that WazirX did not deny these allegations but shifted focus to CoinSwitch, suggesting that it should provide real-time tracking of its own reserves rather than scrutinizing WazirX’s actions. 

A spokesperson from WazirX emphasised that they have implemented measures for real-time tracking of their wallet addresses, contrasting it with CoinSwitch’s lack of transparency regarding its own reserves. 

CoinSwitch has announced plans to pursue legal action against WazirX to recover funds it had deposited on the platform. This includes investments in Indian rupees and virtual digital assets totalling around INR 12.4 Cr (about $1.5 Mn) in cash and other cryptocurrencies. 

It is pertinent to note that WazirX in July faced a significant security breach that resulted in the theft of approximately $230 Mn worth of digital assets.

This attack compromised almost 45% of WaxirX’s overall assets, bringing a liability worth $546 Mn on the crypto exchange. The company also filed an affidavit in the High Court of Singapore wherein it released data of over 240,000 wallet addresses. 

In September, the Singapore courts granted cryptocurrency exchange WazirX a four-month moratorium with specific conditions.

Following this, the crypto exchange said that it would form a 1o member committee of creditors (CoC) by October 9 as it rushed to restructure its liabilities

Meanwhile, the government agencies reportedly started an investigation last month into the heist, seeking information on the illegal transfer of crypto tokens from its wallets. 

Agencies in the likes of the Financial Intelligence Unit (FIU), Intelligence Bureau (IB), and the Indian Computer Emergency Response Team (CERT-In) were said to be interrogating WazirX executives in connection with the crypto hack.

Reportedly, WazirX has also provided details on server and laptop logs, transaction trails, and the blockchain addresses linked to the hacking.