WazirX users are suing the exchange over frozen funds, while demanding transparency and asset recovery
Romy Johnson’s affidavit has challenged the restructuring plan too
WazirX has landed in legal trouble once again. This time, it’s the users taking the exchange to court.
In a heated legal battle unfolding before Singapore’s High Court, users have accused Zettai, WazirX’s local entity, of freezing both their crypto and fiat balances without any clear justification.
The dispute centers on claims that even unhacked assets like Bitcoin [BTC], XRP, Tron [TRX], Binance [BNB], Tether [USDT], and fiat were wrongly withheld, sparking outrage and concerns over exchange accountability.
Romy Johnson’s affidavit challenges WazirX’s restructuring
With users demanding transparency and the return of their funds, a new affidavit filed by Romy Johnson is threatening to reshape the case and raise broader questions about crypto rights and user protections.
At the heart of the legal dispute lies Zettai’s decision to lump all user assets, whether untouched, fiat-like, or allegedly compromised, into a single restructuring plan.
In his 40-page affidavit, Romy Johnson contested this categorization, asserting that Singaporean law prohibits treating user-held trust assets as corporate liabilities.
By categorizing unhacked tokens (Category A), INR equivalents (Category B), and hacked ETH/ERC-20 assets (Category C) under one umbrella, Zettai is accused of sidelining the rights of unaffected users.
What complicates matters further is the questionable nature of the hack itself. This, because blockchain evidence revealed that the stolen funds were transferred through internal multisig wallets, which require multiple authorizations.
So far though, no concrete proof of an external breach has emerged, casting serious doubts on Zettai’s hacking narrative.
What are the users looking for?
Amid growing frustration, WazirX users are actively demanding more transparency from Zettai, urging the company to reveal who authorized the questionable fund transfers.
They are also pushing for a full audit to track asset movements and identify those responsible.
Singapore’s High Court has already rejected one of Zettai’s restructuring proposals for hiding links to an offshore shell company.
Romy Johnson’s latest affidavit strengthens the argument that this case goes beyond WazirX. Especially since it challenges the broader legal principle that crypto held in trusts rightfully belongs to users, even during bankruptcy.
With the next court hearing set for 15 July 2025, WazirX has issued updates on its official X account, making it clear that the legal fight is far from over.
Source: WazirX/X
How is the crypto community reacting?
As expected, the crypto community has strong concerns after Romy Johnson submitted a last-minute affidavit in Singapore, requesting the court to first return unhacked tokens and postpone rulings on the compromised ones.
Critics argue that this approach unfairly divides users, leaving nearly 45%, those with compromised wallets, facing possible delays of up to a year.
Some even saying,
“Justice delayed is justice denied.”
However, some also stood in support of WazirX.
Source: X
Back in July 2024, the exchange suffered a major security breach, losing over $230 million in digital assets to hackers.
With the platform still reeling from past incidents, the ongoing legal battle in Singapore only deepens concerns around its operational transparency and user fund protection. As expected, this has left many to question whether trust in the exchange can be restored.
Next: Story [IP] gains over 10% amid liquidity surge, but is a reversal here?
