CoinSwitch Sues WazirX to Recover $9M in Trapped Funds After Cyber Attack
In the latest development in the Indian cryptocurrency landscape, CoinSwitch, one of India’s leading crypto exchanges, has taken legal action against its competitor, WazirX, to recover approximately $9.65 million (₹810 million) in funds that remain trapped on the WazirX platform. This move comes in the aftermath of a massive cyberattack that reportedly led to the theft of $230 million in digital assets from WazirX.
The tension between the two crypto giants has escalated as CoinSwitch publicly stated that despite its efforts to recover the funds over the past month, no resolution has been reached. CoinSwitch CEO Ashish Singhal announced that the exchange had no choice but to pursue legal recourse after WazirX’s response to the attack proved inadequate in addressing the issue.
In a statement posted on X (formerly Twitter), CoinSwitch outlined that the trapped funds include Indian Rupees, ERC20 tokens, and other cryptocurrencies. Although these funds represent a small portion of CoinSwitch’s total assets—less than 1%—the company reassured its users that their holdings remain unaffected, thanks to its use of treasury reserves.
WazirX, led by Nischal Shetty, has faced mounting pressure as the full impact of the cyberattack becomes clearer. In response, WazirX sought a moratorium in Singapore’s High Court to facilitate restructuring efforts. Shetty has promised on social media that WazirX will treat all affected users fairly, though tensions between the two platforms continue to rise.
This lawsuit highlights the fragility of the crypto sector in India, where security breaches can have far-reaching impacts on major players. With two of the country’s biggest crypto exchanges now embroiled in a legal battle, the broader implications for the industry remain to be seen.
For now, CoinSwitch is focused on recovering its trapped assets, while WazirX struggles to rebuild its platform and reputation in the aftermath of the cyberattack. Both exchanges are under scrutiny as users and investors wait to see how this high-stakes situation will unfold.
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