WazirX Transferred $74 Million in Crypto to Other Exchanges Following $234 Million Hack

WazirX Transferred $74 Million in Crypto to Other Exchanges Following $234 Million Hack

WazirX has reportedly transferred approximately $73.6 million in users' cryptocurrency to global exchanges Bybit and KuCoin after a significant cyber attack that resulted in a loss of $234 million in July. CoinSwitch CEO Ashish Singhal made this claim on October 21, coinciding with the launch of a public dashboard aimed at tracking wallet activities related to the incident.

The transfer of funds came to light after WazirX filed an affidavit with the Singapore High Court, revealing over 240,000 wallet addresses as part of its debt restructuring process. Singhal indicated that CoinSwitch, which holds both fiat and crypto assets with WazirX, was forced to halt withdrawals due to the situation. As a result, CoinSwitch utilized its own treasury to cover users' funds.

In July, CoinSwitch initiated legal action against WazirX, highlighting over $9 million in trapped assets. Although this amount represents less than 1% of CoinSwitch's total assets, the company has made efforts to provide transparency by creating a public dashboard. This dashboard allows users to track the movement of funds and monitor WazirX's wallet addresses.

According to Singhal, a significant portion of WazirX's crypto assets has been redirected to exchanges such as Bybit and KuCoin following the hack. He noted that approximately $72.13 million worth of cryptocurrency has been moved to Bybit, while $1.5 million was transferred to KuCoin.

In response to the allegations, WazirX CEO Nischal Shetty confirmed the transfer of funds to other exchanges but asserted that these transactions were not conducted for trading purposes. Shetty explained that the movement of funds was part of the ongoing process to onboard a custodian, which has taken longer than anticipated due to thorough assessments and explorations of available options.

A spokesperson for WazirX criticized CoinSwitch for its dashboard, stating that the platform has not provided similar transparency regarding its own reserves. The spokesperson emphasized the need for the industry to adopt a culture of transparency, suggesting that CoinSwitch should also create a real-time Proof of Reserves to enhance customer trust.