WazirX Under Fire: Users Sue Over Frozen Crypto & Fiat Funds
- Keyword Financial
- Jul 7
- 3 min read
Summary
WazirX, a major cryptocurrency exchange, is currently facing a legal battle in Singapore’s High Court after users accused its local entity, Zettai, of freezing both crypto and fiat balances without clear justification. The dispute centers on claims that even assets unaffected by previous hacks—such as Bitcoin, XRP, Tron, Binance Coin, Tether, and fiat currency—were wrongly withheld from users. This has led to widespread frustration and demands for greater transparency and the return of funds, with users questioning the exchange’s accountability and asset management practices.
A key development in the case is an affidavit filed by Romy Johnson, which challenges WazirX’s restructuring plan. Johnson argues that Zettai’s decision to group all user assets—whether hacked or not—into a single restructuring process violates Singaporean law, which protects user-held trust assets from being treated as company liabilities. The affidavit also casts doubt on the legitimacy of the reported hack, noting that blockchain evidence suggests the stolen funds were moved through internal wallets requiring multiple authorizations, with no concrete proof of an external breach.
The crypto community is divided over the case. Some support the push for the immediate return of unhacked assets, while others worry this could delay compensation for users with compromised wallets and undermine the principle of equal treatment. The ongoing legal proceedings, set to continue with a key hearing on July 15, 2025, have intensified concerns about WazirX’s transparency and user fund protection, especially in light of a previous $230 million security breach. The outcome of this case could have broader implications for user rights and trust in crypto exchanges.
