The management rights issue of India's major exchange WazirX escalates, and conflicts with the custody company also intensify

WhaleStalker · 2026-01-09T11:17:48+00:00

The founder of WazirX, Nischal Shetty, revealed that a legal battle over corporate governance has escalated, stemming from a 2019 acquisition announcement. This dispute raises risks for regulatory responses and international operations. Additionally, a conflict with a security firm regarding a significant hacking incident highlights the importance of security protocols in the cryptocurrency industry.

WhaleStalker

2026-01-09 11:17:48

Abstract generation in progress

As of December 27th, Nischal Shetty, the founder of WazirX, one of India’s largest cryptocurrency trading platforms, revealed that the dispute over control of the company has escalated into full-fledged legal battles. This conflict traces back to the announcement of acquisition by a major global exchange in 2019, with ongoing disagreements over management control, governance structure, and the distribution of authority in international business operations.

The escalation to legal proceedings signifies increased risks for WazirX in both regulatory compliance and strategic management. Court decisions are likely to have a significant impact on future international partnerships and licensing negotiations.

Conflict with Security Companies Emerges

Meanwhile, Shetty also addressed differences in views with a security company that provides custody services. WazirX claimed that a major security breach in 2024 (estimated damage exceeding $230 million) was partly due to design flaws in the multi-signature custody scheme.

In response, the security company publicly challenged this view and released counter-data. This dispute highlights the ongoing need for the industry to examine the structural design of custody infrastructure and the roles in maintaining and restoring exchange security and resilience.

The development of this layered conflict underscores the importance of legal risk management and security systems in the operation of cross-border cryptocurrency businesses.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.