The legal action and other formalities have been initiated against the popular Indian crypto exchange WazirX.
WazirX was once a prominent Indian crypto exchange. In 2020, it attracted a large number of customers following news of its acquisition by the Binance crypto exchange. However, in 2022, Binance co-founder Changpeng Zhao (CZ) and WazirX co-founder Nischal Shetty posted multiple tweets against each other, revealing that the actual ownership of WazirX was unclear. To this day, a legal battle over the ownership is ongoing in a Singapore court.
https://t.co/PojtA2MWEF#WazirX customers demand #Binanceâs statement about WazirX hack incident, as WazirX is revolving around #bankruptcy @binance @_RichardTeng @cz_binance
â Bitcoinik (@Bitcoinikdotcom) September 4, 2024
In the latest developments, a Crypto X user, representing WazirX customers affected by the WazirX exchange hack, reported that several government agencies have received orders to investigate WazirX regarding fraudulent crypto transactions.
Govt of India investigating WazirX? pic.twitter.com/kt12QvreKA
â Justice for WazirX Users (@IndiasCrypto) October 4, 2024
However, the information shared by the Crypto X user is insufficient to provide complete details about the investigation and the back-end company, Zanmai Labs. Since crypto is a relatively new concept for Indian enforcement agencies, the investigation might face some challenges, and even the spelling of Zanmai Labs is incorrect in official orders.
Moratorium is for Zettai and not for zanmai.
â Justice for WazirX Users (@IndiasCrypto) October 4, 2024
Some Crypto X users with expertise in Indian law clarified that the information circulating on social media does not suggest any legal action against WazirX or its entities. Instead, it indicates an investigation aimed at uncovering the truth and understanding what happened behind the scenes.
No one knows what the outcome will be, but one thing is clear: the WazirX hack incident is likely to change the entire regulatory environment for crypto in India, potentially leading to stricter rules and regulations for crypto companies operating in the country.
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