Embattled cryptocurrency exchange WazirX has transferred over $73 million worth of crypto to exchanges such as Bybit and KuCoin, following a massive data breach that resulted in the theft of $230 million, according to allegations made by rival exchange CoinSwitch. Ashish Singhal, Co-Founder and CEO of CoinSwitch, revealed that WazirX transferred $72.13 million to Bybit and $1.5 million to KuCoin as the company faces mounting liabilities worth $546.5 million.
The accusation comes as WazirX is grappling with the fallout from the breach, which wiped out approximately 45% of its crypto assets. In a statement, WazirX did not deny the transfers but instead questioned CoinSwitch’s own transparency, urging the rival firm to provide real-time proof of reserves and wallet addresses for its users.
Singhal’s CoinSwitch, which holds investments in both Indian Rupees (INR) and virtual digital assets (VDAs) on WazirX, has initiated legal proceedings to recover its funds. The company held Rs 12.4 crore in INR, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in other tokens on WazirX, and is pursuing the recovery of 2% of its total funds.
In an affidavit filed with the High Court of Singapore, WazirX disclosed data from over 240,000 wallet addresses as part of its defense. The company was granted a four-month moratorium by the court, allowing it to restructure its business without facing legal proceedings during that time.
WazirX has stated that it is working to recover stolen assets, implement new revenue-generating products, and partner with external investors to stabilize its operations. The company’s plans also include exploring mechanisms that would allow users in need of liquidity to withdraw crypto assets more quickly, thereby facilitating an exit from the restructuring process.
Credit: This article is based on information from Economic Times, Inc42, and YourStory.
Key Highlights:-
- WazirX moved over $73 million in crypto following a $230 million data breach.
- CoinSwitch accused WazirX of transferring funds to Bybit and KuCoin while facing liabilities of $546.5 million.
- CoinSwitch has initiated legal action against WazirX to recover funds, holding significant assets on the platform.
- WazirX is restructuring its business under a four-month moratorium granted by the Singapore High Court.