CoinSwitch, an Indian cryptocurrency exchange, is attacking opposing platform WazirX, claiming that they are starting legal action to reclaim funds that are stuck on the Nischal Shetty-run crypto site.
CoinSwitch, owned by Ashish Singhal, stated that it has been more than a month since WazirX, a large cryptocurrency exchange in India, reported that a cyber attack on their network resulted in the theft of $230 million (Rs 2,000 crore) in cash.
CoinSwitch currently has Rs 12.4 crore in Indian rupees, Rs 28.7 crore in ERC20 tokens, and Rs 39.9 crore in other tokens stuck on WazirX, accounting for around 2% of its total funds.
According to WazirX, the supposed cyberattack just affected ERC20 tokens. That amounts to less than 1% of total CoinSwitch funds.
“We have sought to communicate with WazirX on a regular basis since the day of the event, but we have been able to reach an agreement to reclaim the funds that are locked on their platform. CoinSwitch stated in a thread on X social networking site that their recent announcement lacked clarification on how a full recovery will take place.
“So we are now taking steps, including legal action, to recover the funds stuck on WazirX,” according to the statement.
WazirX announced on Wednesday that it has filed for a stay of proceedings in Singapore’s High Court to permit restructuring. CoinSwitch has been in constant touch with the WazirX team to get the funds kept on their exchange since the event occurred.
“However, our efforts have not come to fruition, leaving us with no choice but to pursue legal action to recover the funds,” according to the statement.
It further stated that its exposure to WazirX has no impact on its user balances or capacity to service India’s cryptocurrency users. CoinSwitch, as an exchange aggregator, maintains a limited level of liquidity (7%) on third-party crypto exchanges to ensure that its users can trade seamlessly.
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