WazirX moved $73.63M to global exchanges post-cyberattack, CoinSwitch CEO claims
CoinSwitch CEO and co-founder Ashish Singhal, has alleged that WazirX transferred nearly $73.63 million in user cryptocurrency assets to global exchanges Bybit and KuCoin. The move comes after WazirX suffered a major cyberattack, losing nearly 45% of its crypto asset holdings. Singhal's platform flagged the transfer as coming from WazirX, with $72.13 million going to Bybit and $1.5 million to KuCoin.
WazirX's cyberattack and its aftermath
The cyberattack on WazirX, India's largest crypto exchange, took place in July when one of its multisig wallets was compromised. The security breach resulted in a massive loss for the platform, which is estimated to hold accounts for about 33% of India's crypto users. After the incident, WazirX was ordered by a Singapore Court to reveal the addresses of around 240,000 wallets with balances. Note that WazirX's parent company, Zettai Pte, is based in Singapore.
CoinSwitch's response to WazirX's wallet disclosure
In light of the court-ordered wallet disclosure, CoinSwitch created a dashboard to help users track and manage their funds linked to these wallet addresses. "We are pursuing legal action against WazirX to recover our funds so it's important for us to understand the information they have shared deeply," Singhal said. He added that this new tool was developed by their team and is now publicly available for all crypto investors.
Legal battle and fund recovery efforts
CoinSwitch is currently fighting a legal battle with WazirX to reclaim 2% of its funds frozen after the cyberattack. The funds include ₹12.4 crore in INR, ₹28.7 crore in ERC20 tokens, and ₹39.9 crore in other tokens on WazirX. Singhal called the dashboard "just one piece of a complex puzzle" they're trying to solve amid ongoing legal proceedings against WazirX.
