The co-founcer of Indian crypto exchange CoinSwitch has accused rival exchange WazirX of transferring $75 million worth of user funds to global exchanges Bybit and KuCoin in the aftermath of a July 2024 cyberattack.
Ashish Singhal made the allegation as CoinSwitch released a public dashboard tracking wallet activities based on WazirX’s recent wallet disclosure.
Making sense of WazirX’s wallet disclosure for users
Crypto exchange WazirX — which allegedly faced a cyberattack in July 2024 — has released over 240,000 wallet addresses as part of an affidavit they filed in the High Court of Singapore.
These many wallet addresses can be… pic.twitter.com/QfaEmuQXUZ
— Ashish Singhal (@ashish343) October 21, 2024
WazirX recently filed an affidavit with the High Court of Singapore, revealing over 240,000 wallet addresses as part of its debt restructuring efforts.
On Monday, Singhal tweeted that the sheer size of the data dump has left many users confused, particularly in India, where crypto literacy is still growing. “Parsing this data is nearly impossible for the average user,” Singhal said.
CoinSwitch built and shared a dashboard that tracks the movement of funds from WazirX’s wallets to address the confusion.
The dashboard revealed that $72.13 million in crypto had been transferred to Bybit and $1.5 million to KuCoin in the aftermath of the breach.
“Think of this dashboard as just one piece of a complex puzzle that we are also trying to figure out,” Singhal remarked, notifying users that more updates will follow as the situation unfolds.
Due to ongoing legal proceedings, Singhal clarified that there are limits on the information CoinSwitch can share, but assured users of continued transparency.
“If you require different data cuts, don’t hesitate to reach out to us,” he said, asking users to engage with their team.
The WazirX hack
The July 14 cyberattack on WazirX compromised $230 million worth of assets, mostly ERC-20 tokens stored in hot wallets. Following the breach, WazirX suspended all withdrawals, leaving users unable to access their funds.
While the exchange has resumed limited INR withdrawals, crypto withdrawals remain paused as WazirX consolidates its assets to stabilize operations and minimize network fees.
WazirX’s parent company, Zettai Pte Ltd, secured a four-month moratorium from the Singapore High Court in August 2024, giving the exchange temporary relief to restructure its finances.
However, an ongoing legal dispute with CoinSwitch over $9.7 million in frozen funds complicates the recovery process and adds to WazirX’s challenges.
CoinSwitch disclosed that it had deposited INR and other assets with WazirX before the attack, but WazirX blocked withdrawals after the incident.
To protect its users, CoinSwitch dipped into its internal treasury to maintain a 1:1 reserve ratio, guaranteeing customers were unaffected by the dispute.
CoinSwitch did not immediately respond to a request for comment from Decrypt.