Indian cryptocurrency exchange WazirX is under pressure because of ongoing problems that have left users unable to access their investments. The founder of PushpendraTech and SmartViewAi also condemned the situation.
Singh stressed that the issue is critical as the funds are still frozen, and the users cannot trade or withdraw their money. Singh urged all the stakeholders to act in the best interest of the users instead of the lawsuit. He called on unfreezing the locked funds and working together to solve the everyday misery of the affected parties.
Also Read: WazirX Announces Partial INR Withdrawals Following $230 Million Hack
CoinSwitch Alleges Millions in Frozen Assets on WazirX
On August 28, 2024, CoinSwitch, a key competitor of WazirX, revealed that it has substantial funds stuck on the WazirX platform. CoinSwitch claims that approximately $9.7 million of its assets are frozen on WazirX. This includes $1.5 million in INR, $3.4 million in ERC-20 tokens, and $4.75 million in other digital assets, representing about 2% of CoinSwitch’s total holdings.
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In light of these rising tensions, WazirX, the Indian crypto exchange, has sought a 30-day stay order from the High Court of Singapore. The exchange requires interim relief to address its cash flow problems during a strategic restructuring phase. If given, the moratorium will pause some legal activities, which WazirX needs regarding user balances and the recovery process. However, the court has not penned the date it will consider the moratorium application.
Conclusion
It also raised concerns within the cryptocurrency community over frozen user assets, which WazirX struggles with. While the situation unfolds, the pressure on WazirX has increased to ensure a solution is achieved as soon as possible. As in the case of WazirX and its users, the results of the temporarily requested moratorium will be decisive for the subsequent actions of competitors such as CoinSwitch, which also suffers from the platform’s problems.
Also Read: WazirX Resumes Operations After Maintenance, INR Withdrawals Still Pending
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.