CoinSwitch Sues WazirX Over Funds Stuck After Cyber Attack
Crypto exchange CoinSwitch has taken legal action against rival WazirX over funds trapped on the platform following an alleged cyber attack in July.
Legal Battle Unfolds
The lawsuit was filed on the same day WazirX announced a 30-day moratorium with Singapore’s High Court, to which CoinSwitch responded with legal action.
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The Aftermath of the Cyber Attack
- WazirX suffered a cyber attack on July 14, resulting in the theft of $230 million worth of cryptocurrency assets, primarily affecting Ethereum-based tokens.
Withdrawal Woes
- Following the attack, WazirX suspended withdrawals, causing concern and frustration among users.
- Partial withdrawals were resumed recently by the exchange.
CoinSwitch’s Stand
CoinSwitch disclosed having $9.7 million locked on WazirX, comprising various assets. Despite efforts to resolve the issue, no solution has been reached, prompting legal action.
Reassuring Users
- CoinSwitch maintains that users’ funds are secure and unaffected by their exposure to WazirX.
- They plan to release proof of reserves for transparency purposes later this year.
Hot Take: Ensuring Accountability
CoinSwitch’s decision to sue WazirX showcases the importance of accountability in the crypto space. It highlights the need for transparency and safeguards to protect user funds from unforeseen incidents like cyber attacks.
