The legal action and other formalities have been initiated against the popular Indian crypto exchange WazirX. WazirX, once a prominent Indian crypto exchange, gained attention in 2020 after news of its acquisition by Binance. However, in 2022, a dispute arose between Binance co-founder Changpeng Zhao (CZ) and WazirX co-founder Nischal Shetty regarding the ownership of WazirX, leading to an ongoing legal battle in a Singapore court.
In recent developments, a Crypto X user representing WazirX customers affected by the exchange hack reported that government agencies have been ordered to investigate WazirX for fraudulent crypto transactions. However, details about the investigation and the back-end company, Zanmai Labs, remain unclear. The investigation may face challenges due to the unfamiliarity of Indian enforcement agencies with crypto, as evident by the misspelling of Zanmai Labs in official orders.
Despite social media speculation, experts in Indian law have clarified that there is no indication of immediate legal action against WazirX or its entities. The investigation aims to uncover the truth behind the hack and shed light on the events that transpired. The outcome of the investigation remains uncertain, but it is likely to impact the regulatory landscape for crypto in India, potentially leading to stricter rules for crypto companies operating in the country.
The WazirX hack incident serves as a reminder of the risks associated with crypto exchanges and highlights the need for enhanced security measures and regulatory oversight. As the investigation unfolds, stakeholders in the crypto industry will be closely monitoring the developments and preparing for potential changes in the regulatory environment. Stay tuned for updates on this evolving story.