After facing disappointment from their country’s authorities, Indian users of WazirX exchange, have written a letter to the Chief Justice of Singapore, demanding justice following a hack that resulted in a loss of Rs 2000 crore of user funds on July 18.
It is pertinent to note that the WazirX platform management is operating via Zettai, a company founded in Singapore and its co-founders are settled in Dubai while more than 90% users of WazirX hail from India. The exchange has approached Singapore High Court asking for a moratorium to deter any legal action against them by the users.
The letter, drafted by a group of WazirX users, has accused Zettai Pte Ltd of abusing Singapore’s laws to exploit Indian users. They have also challenged the decision to hire Singaporean lawyers using Rs 100 crore of user funds without their approval or consent.
In the letter, WazirX users are challenging the classification of their claims as “contingent creditors” by the directors of Zettai Pte Ltd, the parent company of the crypto exchange. “Contingent creditors” means that users’ claims are conditional and may not be fully honored. Such reckless statements are sparking concern among users who fear they might not recover their investments.
Two Indian companies, Bitcipher Labs and NextGen Dev, have already taken legal action against Zettai’s Indian subsidiary, Zanmai India, for the same matter.
WazirX victims are also furious about the lack of transparency during town hall meetings and the withholding of their remaining unhacked assets, worth $300 million.
A question from the letter reads: “Why the Directors of ZETTAI PTE. LTD were answering the self-made questions and answers via a WazirX blog and don’t want to listen to the feedback and suggestions of their creditors?”
The moratorium application filed by Zettai in the Singapore High Court aims to provide the company with a temporary “breathing space” to restructure its liabilities. However, this move has faced a huge backlash from users, saying that it is an attempt to sidestep Indian regulatory oversight.
The situation has left many users in severe financial distress, as they struggle to cope with their losses and the uncertainty surrounding their recovery. This has encouraged them to appeal to international authorities like Interpol, the FBI, and the CIA for an intervention.
The letter also raised the question of “How ZETTAI PTE. LTD can apply for the grant of Moratorium” while there is an ongoing dispute between Zettai Pte Singapore and Binance.
Also Read: WazirX Users Demand ED Probe, Seek Nirmala’s Attention
