The post WazirX Users Sue Zettai in Singapore Over Frozen Crypto Funds appeared on BitcoinEthereumNews.com.

WazirX users sue Zettai for freezing unhacked crypto held in trust. Alleged hack disputed as token transfers used internal multisig wallets. Singapore court rejected Zettai’s initial plan over offshore entity ties. A legal battle with significant ramifications for the crypto industry has reached Singapore’s High Court, where WazirX users are suing the exchange’s local entity, Zettai, for access to millions of dollars in frozen funds.  The case presents a critical test for the legal status of customer assets on a crypto exchange. Users are also directly challenging the company’s claim of an external “hack,” presenting on-chain evidence that suggests the funds were moved internally. The Central Question: Are User Funds Company Property? The core of the dispute lies in Zettai’s decision to group all user assets, including unhacked Bitcoin, XRP, and fiat balances, into a collective pool with the allegedly hacked tokens for a corporate restructuring. The plaintiffs, represented by user advocate Romy Johnson, argue this is illegal. In a 40-page court submission, they assert that under Singaporean law, only corporate debts can be restructured. They contend that their crypto holdings are client assets held in trust and are not the property of Zettai, and therefore cannot be co-mingled with the company’s financial troubles. Questions Raised Over Legitimacy of Reported Hack Adding a serious complication to Zettai’s case, users are questioning the legitimacy of the “hack” itself.  Blockchain records show the affected tokens were moved using internal multi-signature wallets, a process that requires authorization from multiple individuals within the company. To date, no evidence has been provided to confirm an external security breach. Related: WazirX Victims Demand Action as Frustration With Indian Authorities Boils Over  This has prompted users to call for transparency over the identities of those who approved the transfers. They have also requested an independent audit to…

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Filed under: News - @ July 7, 2025 3:30 pm