In the wake of WazirX exchange approaching Singapore High Court for a moratorium application, several questions are being raised on the declared assets by Zettai Pte Ltd- the parent company of the exchange, in their affidavit.
A discrepancy regarding the Bitcoin holdings of WazirX vis-à-vis Zettai has emerged where several users are alleging difference of 337 Bitcoins worth Rs 156.49 crores between the actual BTCs holdings and BTCs declared in the affidavit. The development comes after Zettai approached Singapore High Court requesting for a six months breathing space to allow a restructure plan for users.
According to prominent Indian crypto influencer Aditya Singh (@cryptooady), an alleged WazirX’s Bitcoin wallet currently holds 1,475 BTC, whereas the moratorium affidavit submitted to the Singapore High Court reports only 1,138 BTC. This mismatch of 337 Bitcoin, equivalent to Rs 156.49 crores, has sparked controversy and raised questions about the exchange’s transparency and financial disclosures.
The discrepancy was first uncovered by Aditya Singh, who shared his findings on X. Singh’s research revealed that WazirX’s actual Bitcoin holdings are significantly higher than what was reported in the court document.
The affidavit, part of a moratorium petition aimed at restructuring the company’s financial obligations, was expected to reflect an accurate and complete picture of WazirX’s assets. Instead, Singh’s findings indicate a shortfall in the reported figures, leading to speculation about the exchange’s motives behind underreporting its Bitcoin reserves.
Potential Implications
This revelation has caused a stir within the cryptocurrency community, with many questioning the integrity of WazirX’s financial reporting. The mismatch in Bitcoin holdings could imply several potential scenarios, including errors in internal accounting, an attempt to obscure the exchange’s true financial health, or a strategic move related to its ongoing legal challenges.
Regulatory bodies and users alike are concerned about the implications of this discrepancy. For WazirX, which has faced scrutiny in the past over regulatory compliance and internal controls, this development could invite further investigations from authorities and erode trust among its user base.
Legal and Regulatory Repercussions
The difference between the reported and actual Bitcoin holdings could have legal consequences for WazirX. Misrepresenting financial information in a court affidavit, particularly in a jurisdiction like Singapore known for its stringent legal standards, can lead to severe penalties.
The High Court of the Republic of Singapore – where the affidavit was submitted – may seek clarification from WazirX on this discrepancy, potentially leading to legal action if misconduct is established.
Moreover, the issue could attract the attention of other regulatory authorities – including those in India – where WazirX operates under the lens of the country’s evolving cryptocurrency regulations. This incident adds another layer of complexity to the exchange’s ongoing regulatory challenges.
Also Read: Breaking: WazirX Hacker moves another Rs 100 crore for money laundering
