WazirX Users Sue Zettai Over Frozen Assets

WazirX users have initiated legal action against the exchange's local entity, Zettai, in Singapore, seeking to recover millions of dollars in frozen assets. The dispute arises from an alleged hack that resulted in the freezing of user funds, raising critical questions about asset ownership and transparency within crypto platforms.

Zettai has asserted that an external security breach was responsible for the freezing of user funds. However, the plaintiffs, represented by user advocate Romy Johnson, have presented blockchain data that challenges this claim. The data suggests that the transfers were made internally, using multi-signature wallets that require internal approval. This has cast doubt on the legitimacy of the alleged breach and the company's handling of the situation.

The users argue that Zettai's restructuring efforts are illegal, as the company attempted to unify all user assets, including Bitcoin, XRP, and fiat, with the supposedly hacked tokens in a general pot. This move was part of Zettai's plan to recover financially, but users contend that their holdings were never part of the company's assets and were instead held in trust and protected under Singaporean law. They demand that only corporate debt be subject to the restructuring process, not customer-owned digital assets.

Despite Zettai's assurances that a revised plan would ensure repayment, users remain skeptical, particularly given the hidden connections to an offshore shell company that have damaged the exchange's reputation. Users are now seeking an independent audit to trace the flow of finances and establish internal accountability. They also want to know who authorized the transfers and are demanding concrete evidence of the alleged external hacking.

The outcome of this legal battle could have significant implications for the crypto industry, potentially redefining how exchanges handle client assets. As the case progresses, WazirX users continue their fight to recover their frozen funds, highlighting the need for greater transparency and accountability within the crypto ecosystem.