Coinswitch Files Affidavit Against WazirX, Claims Concealment of Misconduct and Potentially Fraudulent Expenditures

A recent affidavit filed by the Coinswitch crypto exchange against WazirX has alleged that WazirX misused customers’ funds.

WazirX, once a popular Indian crypto exchange, faced a hacking incident two months ago, resulting in the loss of $235 million worth of cryptocurrencies. So far, the WazirX leadership has not identified the hacker.

Coinswitch, a moderately popular Indian crypto exchange, filed an affidavit in a Singapore court against WazirX’s parent company, Zettai. The affidavit alleges that Zettai is trying to hide wrongdoing or misuse of funds by its leaders or promoters. Coinswitch suspects that the promoters may have dishonestly or fraudulently spent the money and are now attempting to cover it up to avoid being caught.

Coinswitch has clarified that it holds $1.49 million in fiat, $3.45 million in ERC-20 tokens, and $4.8 million in other tokens on the WazirX platform, representing only 2% of Coinswitch’s total users’ funds. This fund amount belongs to Coinswitch’s company fund, not customers. It also confirmed that WazirX lost only ERC-20 tokens in the hacking incident, while the rest of the funds remain safe under WazirX’s custody.

Many crypto users on X (formerly Twitter), including former WazirX users, have expressed support for Coinswitch’s actions against WazirX’s leadership over the alleged misconduct.

Just a few days ago, the WazirX team restricted users from commenting on all posts on their X account, allowing only mentioned individuals to respond. This move was likely an attempt to limit the toxic comments from disgruntled WazirX customers.

WazirX price action 

Despite the bad news around WazirX, the native token of this exchange is surging day by day. In the last 7 days the trade price of WazirX token surged 10%.

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