Indian cryptocurrency exchange WazirX is reeling after a massive hack that saw over $230 million in cryptocurrencies vanish. Now, adding fuel to the fire, a clause buried deep within WazirX’s user agreement needs to be addressed. In the WazirX policy agreement our Team has found that affected users face a mandatory 60-day waiting period before pursuing legal action against the platform if required.
This delay is stipulated in WazirX’s PRIVACY POLICY last revised on March 18th, 2019, which outlines stringent conditions for liability and dispute resolution following significant security breaches.
WazirX has implemented a policy that shields the platform from liability for most forms of damages, except in cases of gross negligence, fraud, willful misconduct, or intentional violation of the law. This means that affected users cannot seek compensation for losses such as data breaches, financial impacts, or other indirect damages unless these conditions are met.
The policy further mandates if no resolution is achieved within 60 days of notification, affected users may then proceed to arbitration under the rules of the Singapore International Arbitration Centre (SIAC). This arbitration process supersedes traditional court proceedings, eliminating the option for jury trials and barring collective legal actions through class-action lawsuits.
The inclusion of a force majeure clause in the policy further complicates matters for affected users. This clause absolves WazirX from responsibilities in cases of unforeseeable events such as cyberattacks, natural disasters, or significant market volatility, which could impact service delivery or exacerbate the fallout from security breaches.
This policy framework significantly delays potential legal actions against WazirX, requiring affected users to navigate a structured resolution process before seeking arbitration. The 60-day waiting period underscores the procedural challenges and limitations faced by users aiming to recover losses or hold WazirX accountable for the breach.
As WazirX users assess the impact of the recent hack, the platform’s stringent policy on liability and dispute resolution sets a clear path forward, emphasizing arbitration over traditional legal avenues. With a focus on individual resolutions and adherence to arbitration guidelines, affected users must prepare for a rigorous process should they seek to pursue legal recourse after the 60-day waiting period.
This news piece aims to inform WazirX users of the procedural hurdles and limitations they face in seeking legal action following the recent security breach, emphasizing the importance of understanding and adhering to WazirX’s updated policy framework.
This news piece also does not promote any negative action against WazirX and reminds users that the 60-day period also provides room for WazirX to solve any issue peacefully and help everyone move forward without any further inconvenience.
Also Read: WazirX Hack: Investor Funds in Limbo as $230 Million Vanishes