Rg1994

WazirX’s “Recovery Scheme” Violates Investor Rights & Demands Judicial Intervention. I write this tweet to raise a grave and urgent concern regarding WazirX’s so-called “Recovery Scheme”, which, in my view and in the view of several other aggrieved investors, constitutes a deliberate violation of investor protection laws under Indian financial and consumer jurisprudence. Background: On the day of the 2025 hack, I held 1,331 XRP tokens in my fully verified WazirX account, valued at ₹58,000. These tokens were never compromised in the hack, yet they were unjustly frozen for over a year — denying me the opportunity to exit or rebalance during XRP’s massive price appreciation. As of July 2025, XRP trades at around ₹304. This means my original holdings would now be worth nearly ₹4,00,000. However, under the WazirX-proposed “Rebalanced NLPA”, I am now forcibly allocated only 191 XRP, currently worth ~₹57,796 — an 86% reduction in holdings. This “scheme” applies indiscriminately even to wallets that were never hacked, effectively penalizing users who bore no fault or exposure. Core Legal and Ethical Issues: 🔹 1. No Oversight by Indian Judiciary: The scheme is being implemented through a Singapore-based restructuring process, circumventing Indian laws and judicial authority. This amounts to bypassing Indian user protection frameworks, especially for a platform that onboarded users through Indian KYC and operated in INR. 🔹 2. Coercive Terms: Users are presented with an ultimatum — either vote “FAVOUR” of the restructuring, or forfeit their assets altogether. This coercive framework violates the principle of free, informed, and voluntary consent, especially under duress. 🔹 3. Unhacked Tokens Being Used to Socialize Losses: The scheme effectively forces holders of safe, untouched tokens to absorb losses on behalf of those affected by the hack, while the exchange avoids using its own operational reserves to compensate. This is an unprecedented misallocation of risk, contrary to industry norms. 🔹 4. Clear Alternative — Why Not Use Profits or Reserves? WazirX was, at its peak, one of India’s most profitable crypto exchanges, facilitating billions in trading volume and charging significant fees. Had even a fraction of profits or reserve capital been allocated to hacked users, the platform could have made them whole without haircutting untouched wallets. Exchanges like CoinDCX recently covered a $44M hack from internal reserves, with zero impact to user funds — setting a standard WazirX has clearly ignored. And many more core issues. Planned Legal Recourse: Given the clear violation of consumer rights, arbitrary asset confiscation, and jurisdictional overreach, we are now preparing to file a civil suit against Zanmai Labs Pvt. Ltd. (WazirX’s Indian operating entity) before the Hon’ble Bombay High Court, with escalation to the Supreme Court of India if necessary. This suit shall include: 1.A civil claim seeking recognition and protection of assets belonging to unhacked users. 2.An interim injunction to immediately freeze all asset distributions under the NLPA scheme until a court-monitored forensic audit and a just, transparent, and equitable recovery framework is approved. 3.A demand for WazirX to disclose full details of its reserve holdings, insurance policies, internal fund transfers, and the mechanics of the proposed NLPA redistribution. Call for Immediate Action: We urge: •Regulators (SEBI, RBI, and Ministry of Electronics & IT) to take immediate cognizance of this matter. •The Indian crypto and legal community to rally around affected users and support accountability. •WazirX management and investors to halt this unfair distribution and open the door for mediation or legal resolution. Community deserves better. Users deserve better. Help us make it happen.

Following the Singapore Court’s approval to conduct a re-vote on the amended Scheme of Arrangement, we have outlined the next steps for all creditors. The next steps include issuing the amended Scheme of Arrangement and explanatory statement, followed by a Townhall and a re-vote. Voting dates will be announced next week. Read more about the next steps in detail 👉 wazirx.com/blog/wazirx-re…