Crypto Chaos: WazirX Users Sue to Recover Millions in Frozen Assets

• Users demand return of frozen crypto funds from WazirX entity.
• Blockchain data challenges Zettai’s claims of external security breach.
• Court ruling may redefine crypto asset protection in Singapore.

A legal battle is underway in Singapore as WazirX users take the exchange’s local entity, Zettai, to court. The users are demanding access to millions of dollars in frozen assets that were locked following an alleged hack. This case now poses serious questions about asset ownership and transparency within crypto platforms.

Zettai claimed that an external attack froze user funds, nevertheless, the plaintiffs’ report on blockchain data indicates the transfers were made internally.  Multi-signature wallets were used to transfer the tokens; they need internal approval to be moved, and it is questionable whether the breach is legitimate.

According to the users, Zettai’s restructuring is an illegal move. Zettai had tried to unify all user assets, including Bitcoin, XRP, and fiat, with the supposedly hacked tokens in a general pot. The company sought to pull this pool as an extended plan to recover financially.

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Users Challenge Ownership and Internal Control of Funds

Plaintiffs maintain that their holdings were never part of the company’s assets. Represented by user advocate Romy Johnson, they claim the funds were held in trust and protected under Singaporean law. They demand that only corporate debt is worthy of the restructuring process, but not customer-owned digital assets.

Despite Zettai’s assurance that a revised plan will ensure repayment, users remain skeptical. That plan contained hidden connections to an offshore shell company, decimating the exchange’s reputation and its relationship with its customers.

Although Zettai promised that a new plan would ensure that borrowers pay off their debts, users are doubtful. They now want to know who authorized the transfers. In addition, they seek an independent audit to follow the flow of finances and find internal accountability.

Zettai still has not offered any concrete evidence of external hacking. Such ambiguity has continued to add to user outrage and sustain the litigation.

The upcoming court ruling could set a critical precedent for crypto exchanges handling client assets. Until then, WazirX users continue to seek legal remedy in their fight to recover frozen funds.

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