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Market News

Is the WazirX Hack a Lie? Users’ Question Official Story

Romy alleges Zettai used unhacked tokens to balance books while WazirX’s Indian arm, Zanmai Labs, reported ₹920 crore in revenue, yet claimed to have zero employees.

Written By:
Dishita Malvania

Reviewed By:
Dhara Chavda

Last updated: July 7, 2025 6:09 PM
Published July 7, 2025 3:14 PM
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Last updated: July 7, 2025 6:09 PM
Published July 7, 2025 3:14 PM
Is the WazirX Hack a Lie? Users' Question Official Story

It’s been nearly a year since the massive WazirX hack rocked India’s crypto scene. On July 18, 2024, over ₹2,000 crore worth of digital assets vanished and for many users, the situation has gone from bad to worse. 

WazirX, once the biggest exchange in India, has now become a textbook example of what happens when trust in a platform collapses.

For thousands of users, the wait for justice continues. Many still don’t have access to their funds, not even the crypto that wasn’t touched by the hack.

Amid the silence from the company and lack of any resolution, one voice has stood out, Twitter user Toofaan Army. For months, they’ve been consistently sharing updates, digging into the case, and posting documents that might otherwise stay hidden. This time, they’ve shared a detailed affidavit that could change everything.

Romy Johnson Steps In

On July 6, 2025, Romy Johnson, a verified WazirX user, filed a 40-page affidavit in Singapore’s High Court (HC/OA 1284/2024). He’s not a lawyer, he filed this on his behalf. But he’s doing it for a group of users whose crypto was never hacked, yet remains locked up.

These users, categorized as Category A — hold coins like BTC, XRP, TRX, BNB, USDT (TRC-20), and even INR balances. Romy argues these aren’t debts and shouldn’t be part of any restructuring. 

Under Section 64 of Singapore’s IRDA, only debts can be restructured. Tokens that were simply held in custodial wallets should be returned, plain and simple.

🧵 THREAD: Why WazirX Users Are Fighting Back in Singapore Court

👇 A 25-part breakdown of Romy Johnson’s 40-page affidavit representing “Category A” users whose unhacked crypto assets remain unjustly frozen by Zettai Pte Ltd.https://t.co/BVHshdbhq9#WazirX #WazirXScam pic.twitter.com/fJkQKNTmQs

— TOOFAAN (@TOOFAANARMY) July 6, 2025

“Zettai claims a hack on 18 July 2024. But blockchain analysis shows internal multisig wallets signed off on the transfers. There’s no proof of an external breach. That invalidates ‘force majeure’,” the affidavit says.

The keys to those multisig wallets were reportedly controlled by Zettai and custodian Liminal. Yet, to date, the names of the signers haven’t been revealed. Romy claims this is a breach of fiduciary duty under Singapore law. He even points to the Foo Jong Peng v Phua Kiah Mai [2012] case to support his claim.

That’s not all, Singapore’s court had already rejected Zettai’s restructuring proposal back in June 2025. Why? Because it failed to disclose a shell entity in Panama called Zensui Ltd. Romy argues this is a deliberate attempt to hide connections, drawing parallels with the Pacific Andes [2016] case.

Legal Rights, Broken Trust

Romy breaks down users into three categories:

  • Category A: Crypto that wasn’t hacked
  • Category B: Fiat (INR)
  • Category C: Hacked ETH/ERC-20 tokens (worth over $234M)

He’s clear, only Category C should be part of the restructuring. Everyone else should get their tokens back immediately.

He points to past judgments, like B2C2 v Quoine [2019] and CLM v CLN [2022] — to prove that user assets remain user-owned even during insolvency.

What’s worse, Romy says Zettai used unhacked tokens to rebalance its books, reclassified user funds as liabilities, and shut out users who didn’t agree to the scheme. He even reveals revenue figures: over ₹920 crore (~$112 million). 

And yet, Zanmai Labs — WazirX’s Indian arm, reported having “zero employees.” Romy suggests the manpower expenses were sent to shell firms.

He’s not asking for much, just basic fairness. He’s demanding:

  • Immediate return of unhacked tokens
  • Full disclosure of all wallet flows
  • Names of everyone who held the multi-sig keys
  • A proper audit of custodian Liminal’s role
  • A freeze on all internal and offshore transfers

Community Divided

But not everyone sees Romy’s filing as a good move. Twitter user Amol Jagde (@AmolJagde) posted a thread warning that this affidavit could hurt the very people it claims to help.

“One affidavit could delay your #WazirX fund — again,” Amol wrote. With the final court hearing just days away, he argued that Romy’s motion could derail the process and leave 45% of users — those whose tokens were hacked — waiting even longer.

“Let’s be clear — WazirX’s restructuring scheme is meant to recover and distribute funds (both hacked & unhacked tokens) equitably. Romy’s motion creates a dangerous divide: He wants only unhacked tokens returned now, ignoring 45% of users whose funds were hacked,” Amol posted.

He warned this wasn’t the first time such filings caused delays. A previous affidavit disrupted the process in April and led to the court rejecting the plan. “This motion claims to help users — but all it does is: delay fund access, divide the community, and play into the hands of Binance-aligned narratives.”

To this, Twitter user Toofaan Army fired back with a simple response:

“Listen @AmolJagde, I’ll explain simply. #WazirX is doing a debt settlement via restructuring. Users who accepted Zettai’s scheme let their Unhacked tokens be used for rebalancing. Those who rejected or didn’t vote retain full ownership of their Unhacked tokens under Singapore law.”

What Happens Next?

The final court hearing is scheduled for July 17, 2025. The outcome could decide not just the future of WazirX’s users, but how crypto custodians around the world treat user assets during a crisis.

If the court sides with Romy, it could be a landmark win, not just for him, but for anyone who’s ever left their tokens in someone else’s custody. But if the filing delays everything again, thousands of users could be left with nothing, no hacked tokens, no unhacked tokens, and no clarity.

All eyes are on Singapore now. For many Indian crypto users, this is the final stretch. A verdict can’t come soon enough.

Also Read: WazirX Restructuring Rescheduled to July 15 by Singapore Court

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Dishita Malvania - Senior crypto journalist at The Crypto Times
By Dishita Malvania
Follow:
Dishita Malvania is a Crypto Journalist with 3 years of experience covering the evolving landscape of blockchain, Web3, AI, finance, and B2B tech. With a background in Computer Science and Digital Media, she blends technical knowledge with sharp editorial insight. Dishita reports on key developments in the crypto world—including Litecoin, WazirX, Solana, Cardano, and broader blockchain trends—alongside interviews with notable figures in the space. Her work has been referenced by top digital media outlets like Entrepreneur.com, The Independent, The Verge, and Metro.co, especially on trending topics like Elon Musk, memecoins, Trump, and notable rug pulls.
Dhara Chavda- Crypto Research Analyst at The Crypto Times
By Dhara Chavda
Follow:
Dhara Chavda is a Content Strategist and Research Analyst with 5 years of experience in the crypto industry. She holds a Bachelor’s degree in Computer Engineering and brings a strong technical perspective to her work. Dhara specializes in DeFi, price analysis, and the core mechanics of cryptocurrencies. She also works on crypto news, including research, analysis, and assigning stories, ensuring accurate and timely coverage of key developments in the space.

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