#CoinSwitch sues #WazirX to recover trapped funds
CoinSwitch, a major Indian cryptocurrency exchange, is suing its rival WazirX to recover funds following a cyber attack on WazirX that resulted in $230 million worth of digital assets being stolen.
The breach, reported over a month ago, led WazirX to propose a “socialized loss” strategy, spreading the financial impact across all users. CoinSwitch claims it has approximately ₹810 million ($9.65 million) trapped on WazirX, including ₹124 million in fiat and the rest in various cryptocurrencies.
Despite attempts to resolve the issue directly with WazirX, CoinSwitch has not succeeded, prompting legal action. This situation underscores ongoing issues in India's cryptocurrency sector, marked by regulatory challenges and security concerns.
The WazirX hack is considered the largest crypto theft in India, further shaking confidence in the industry. CoinSwitch has emphasized that the trapped assets represent a small fraction of its total holdings, and it is using its own funds to maintain user balances.
