WazirX Drama: Crypto Chaos and Courtroom Clashes! 🚨

by

In a twist that would make even the most jaded of cynics raise an eyebrow, the Delhi High Court has waded into the murky waters of WazirX’s crypto conundrum. The platform, accused of playing fast and loose with user assets, now finds itself under the judicial microscope. Petitioners Sudhir Verma and Kunal Dhariwal, armed with righteous indignation and a petition, have challenged the Union of India over WazirX’s alleged restructuring shenanigans. The court, ever the arbiter of justice, issued a notice on March 28, 2025, demanding answers. 🕵️‍♂️

This legal drama, part of a larger case filed in October 2024, seeks to halt the restructuring of user assets without their consent. The court, in its infinite wisdom, has given the government two weeks to respond. Meanwhile, the case has ignited a firestorm of concerns over user rights and data protection. Because, let’s face it, nothing says “trust us” like restructuring someone’s crypto without asking. 🙃

At the heart of the matter is a Scheme of Arrangement dated March 12, 2025, proposed by Zettai Pte. Ltd. to manage and redistribute users’ crypto assets on WazirX. The petitioners argue that this scheme is as transparent as a brick wall, raising serious concerns over the lack of user consent. Because who needs consent when you can just, you know, do it anyway? 🤷‍♂️

Here’s the kicker: crypto assets worth ₹2,700 crore were untouched by the July 2024 cyberattack. Yet, a whopping ₹4,400 crore in assets—including those unaffected—are now being restructured. This includes rebalancing and liquidating assets to cover Zettai’s debts and operational costs, such as ₹259 crore in legal and administrative fees. The petitioners claim this is being done without user consent, which, let’s be honest, is about as fair as a rigged game of Monopoly. 🎲

But wait, there’s more! The restructuring plan also forces users to drop legal cases and protect the platform from any blame, even if they don’t agree with the plan. And if that’s not enough, the voting process is being handled by a private advisor, raising concerns about bias. Oh, and did we mention the major data privacy worries? Personal and financial info of over 4 lakh Indian users is being shared with foreign companies. Because nothing screams “data security” like sharing sensitive info with strangers. 🤦‍♀️

Adding to the intrigue, the petitioners claim that taking the restructuring case to the High Court of Singapore is a clever ploy to avoid Indian legal checks. This could leave Indian users without a fair legal solution. They’ve asked for a Special Investigation Team (SIT) of experts in cybercrime, financial fraud, and digital assets to investigate the cyberattack and ensure Indian laws are properly enforced. Because, you know, justice is best served with a side of expertise. 🕵️‍♀️

Mark your calendars, folks—the next hearing is scheduled for April 29. Will justice prevail, or will this crypto circus continue? Only time will tell. 🎪

Read More

2025-04-07 13:22