In a significant development following the $230 million cryptocurrency asset heist, the biggest cryptocurrency exchange in India, WazirX, is being sued before the National Company Law Tribunal (NCLT) together with its infrastructure partner Liminal and related companies.
The petition, filed by a Supreme Court law intern, Gauransh Vyas, on August 5 in Indore, seeks an investigation into the company’s affairs on suspicion of mismanagement, malpractices, or fraudulent activities. The petitioner has also sought a freeze on the company’s assets during the inquiry.
WazirX and Liminal have confirmed their awareness of the petition and assured that they are taking necessary legal action. Both entities have strongly denied any allegations of fraud and have committed to responding to the NCLT as per the prescribed legal procedures.
The theft of crypto assets worth $230 million has resulted in shock waves moving across the entire crypto industry. According to Cyfirma, a cybersecurity firm, it was the Lazarus Group that instituted this cyberattack, and the group is a hacking collective supported by North Korea’s government.
Since the event was quite publicised in the media, the US Federal Bureau of Investigation prompted WazirX to conduct an extensive investigation into the breach. Concerns over the security of user cash have been raised by the heist, which has also brought attention to the crypto ecosystem’s susceptibility to hacks.
A further layer of complexity is the current legal battle between Binance and WazirX. WazirX’s attempts to recover financially have been impeded by rumours that Binance owns over $80 million worth of WRX tokens and controls a significant percentage of the company’s earnings.
The circumstances underlying the theft and the roles played by the people involved are anticipated to be clarified by the NCLT proceedings. For the cryptocurrency market in India and elsewhere, the case’s verdict may have significant ramifications.
Regulatory surveillance of cryptocurrency exchanges is expected to increase as the probe progresses. This event might expedite the government’s policy-making process, which has been exploring tougher rules for the cryptocurrency industry.
Concerned about the safety of their investments and the industry’s overall future, the cryptocurrency community is intently monitoring these events.
