WazirX Transferred $74 Million in Cryptocurrency to Alternative Exchanges Following Significant Hack: CoinSwitch

CoinSwitch CEO Ashish Singhal has asserted that WazirX transferred approximately $73.6 million in users’ cryptocurrency to global exchanges Bybit and KuCoin following its significant $234 million cyber attack in July.

Singhal made the allegation on Monday, as CoinSwitch launched a public dashboard to monitor wallet activities after WazirX’s recent wallet disclosure. The compromised exchange has recently submitted an affidavit to the Singapore High Court, revealing over 240,000 wallet addresses as part of its debt restructuring initiatives.

Singhal tweeted that CoinSwitch maintains both fiat and cryptocurrency with WazirX, but the exchange “illegally” suspended withdrawals. Consequently, CoinSwitch utilized its own treasury to safeguard users’ funds.

CoinSwitch’s Legal Action Against WazirX Highlights $9 Million in Locked Assets

CoinSwitch initiated legal proceedings against WazirX in July, disclosing over $9 million in locked funds.

Singhal pointed out that the affected funds represent less than 1% of CoinSwitch’s total assets. Nonetheless, the company has created a dashboard to meticulously analyze the wallet addresses.

Understanding WazirX’s wallet disclosure for users
Crypto exchange WazirX — which reportedly experienced a cyberattack in July 2024 — has disclosed over 240,000 wallet addresses as part of an affidavit submitted to the High Court of Singapore.
These numerous wallet addresses can be… pic.twitter.com/QfaEmuQXUZ

— Ashish Singhal (@ashish343) October 21, 2024

“Currently, we are making that dashboard publicly accessible in the hope that it will assist crypto investors broadly,” he stated.

“By examining these wallets, we have noticed a significant portion of WazirX’s cryptocurrency has been transferred to exchanges like Bybit and KuCoin following the incident,” Singhal continued. “At this point, we have tracked the transfer of $72.13 million worth of cryptocurrency to Bybit and $1.5 million to KuCoin.”

WazirX CEO Explains Transfer, Denies Trading Intent Amid Custodian Delays

WazirX CEO Nischal Shetty confirmed the fund transfer to other exchanges but clarified that the movement was not intended for trading activities.

“Funds were transferred to certain exchanges as we are still in the process of onboarding a custodian,” he stated on X. “This process is taking longer than anticipated; we need to be meticulous in our evaluation and thoroughly explore all options.”

POR work is ongoing. The team is striving to complete it as soon as possible so we can share it with everyone.
There have been inaccurate claims suggesting that funds were moved to exchanges for trading!
Funds were transferred to some exchanges as we are still in the process of onboarding a custodian. This…

— Nischal (Shardeum) (@NischalShetty) October 22, 2024

In the meantime, a WazirX representative criticized CoinSwitch for launching a dashboard featuring WazirX’s wallet addresses, emphasizing that CoinSwitch has not provided the same degree of transparency regarding its own reserves.

“It demonstrates how simple it is to create a dashboard, but unfortunately [CoinSwitch Kuber] has not developed one for their customers who have been requesting it for many years,” the spokesperson told Cryptonews.

“Therefore, we would urge CSK to first address their own Proof of Reserves, make it real-time, and share all of their wallet addresses as well along with a dashboard to facilitate their customers. It’s time for everyone in the industry to advance towards transparency, and a real-time POR is the optimal path forward.”

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