WazirX Users Demand Funds Return in Singapore Court Battle

WazirX, a prominent cryptocurrency exchange, is embroiled in a legal battle as users accuse the platform of freezing their crypto and fiat balances without clear justification. The dispute is unfolding in Singapore’s High Court, where users are demanding transparency and the return of their funds. The controversy centers on Zettai, WazirX’s local entity, which has been accused of wrongly withholding assets such as Bitcoin, XRP, Tron, Binance, Tether, and fiat currencies.

Romy Johnson’s affidavit has added a new dimension to the case. In a 40-page document, Johnson challenges Zettai’s restructuring plan, arguing that Singaporean law prohibits treating user-held trust assets as corporate liabilities. Johnson contends that Zettai’s decision to lump all user assets into a single restructuring plan is illegal and unfair to users whose assets were not compromised. The affidavit also questions the legitimacy of the hack, as blockchain evidence suggests that the stolen funds were transferred through internal multisig wallets, which require multiple authorizations. This raises doubts about Zettai’s narrative of an external breach.

Users are calling for a full audit to track asset movements and identify those responsible for the questionable fund transfers. The Singapore High Court has already rejected one of Zettai’s restructuring proposals for hiding links to an offshore shell company. Johnson’s affidavit strengthens the argument that this case has broader implications for crypto rights and user protections, particularly during bankruptcy proceedings. The next court hearing is scheduled for July 15, 2025, and WazirX has indicated that the legal fight is far from over.

The crypto community has reacted strongly to the developments. Romy Johnson’s last-minute affidavit, requesting the court to return unhacked tokens first and postpone rulings on compromised ones, has sparked concerns about fairness and equal treatment for all users. Critics argue that this approach could derail the original restructuring plan and leave users with compromised wallets facing delays of up to a year. Some community members have expressed support for WazirX, while others have voiced fears that justice delayed is justice denied.

In July 2024, WazirX suffered a major security breach, losing over $230 million in digital assets. The ongoing legal battle in Singapore has deepened concerns about the exchange’s operational transparency and user fund protection. Many users and observers are questioning whether trust in the exchange can be restored amidst these challenges. The outcome of the legal battle will be crucial in determining the future of WazirX and its ability to regain user confidence.