WazirX is once again at the center of controversy, this time facing a legal challenge from its own users. In an escalating case before Singapore’s High Court, the exchange’s local entity, Zettai, stands accused of freezing user funds — both crypto and fiat — without clear justification or explanation.
The dispute revolves around claims that user assets such as Bitcoin (BTC), XRP, Tron (TRX), Binance Coin (BNB), Tether (USDT), and even fiat holdings were frozen despite being unaffected by the platform’s previous hack.
The users allege that Zettai wrongfully included these assets in a sweeping restructuring plan, grouping them alongside compromised tokens — a move they argue undermines their rights and ownership.
In a pivotal development, Romy Johnson filed a detailed 40-page affidavit challenging Zettai’s legal framework. He asserts that Singaporean law prohibits pooling trust-held user assets with a company’s corporate liabilities, especially during restructuring.
Johnson criticized Zettai for classifying all funds — including unhacked crypto (Category A), INR-equivalent balances (Category B), and hacked ETH/ERC-20 tokens (Category C) — under a single treatment plan, thereby violating user protections and transparency standards.
Adding to the complexity, blockchain evidence shows the allegedly stolen assets were moved using internal multisig wallets, raising doubts about whether the incident was an external hack or an inside job. Despite WazirX’s narrative, no definitive proof of external intrusion has surfaced, further deepening skepticism.
Users are demanding the immediate return of unhacked funds and a full independent audit of all transactions. They are also asking Zettai to disclose who authorized the transfers and provide detailed timelines and wallet records.
Singapore’s High Court has already rejected one of Zettai’s restructuring proposals for concealing ties to an offshore shell company, heightening concerns about governance.
Johnson’s latest affidavit argues that crypto held in trust belongs to users — even in bankruptcy. With the next hearing scheduled for 15 July 2025, the case could set a major precedent for crypto custodianship in Asia.
While many in the crypto community support Johnson’s call for user-first transparency, others argue that splitting affected and unaffected users could delay justice for some. Around 45% of users with hacked wallets may now face extended delays in fund recovery, fueling tensions over fairness.
One critic summarized the sentiment:
“Justice delayed is justice denied.”
Still, some back WazirX, noting the platform’s $230 million hack in July 2024 and its ongoing recovery efforts.
As the case unfolds, it raises broader questions around crypto regulation, user protections, and whether exchanges can ever regain full trust after major failures. With court proceedings intensifying and public scrutiny mounting, WazirX’s legal and reputational future hangs in the balance.
July 2025, Cryptoniteuae