The Singapore court has granted WazirX-Indian cryptocurrency exchange a 4-month conditional moratorium after a $230 million hack on July 18, which led to the loss of around 45% of the customers fund.
WazirX originally requested a six-month moratorium under Section 64 of the Insolvency, Restructuring, and Dissolution Act (IRDA). However, the Singapore court granted for a shorter, four-month period.
The moratorium laid out several conditions for transparency and to restore creditors and users confidence, which are as follows:
- WazirX must publicly disclose wallet addresses via a court affidavit.
- They must respond to user queries raised during court proceedings.
- Release their financial information and books of accounts within 6 weeks.
- Ensure that future voting on court applications is conducted through an independent platform, scrutinised by third parties.
The court acknowledged WazirX’s proactive steps, including its immediate filing of the moratorium to facilitate the fastest, creditor-approved, and legally binding resolution to restore users crypto balances.
WazirX replied, "We are working diligently with our advisors and stakeholders to develop a comprehensive plan that addresses the needs of all involved parties. WazirX appreciates the court's trust and confidence in our actions." Founder of WazirX, Nischal Shetty, said,We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery, and restructuring.".
The hacker has reportedly nearly completed laundering stolen funds using Tornado Cash to obscure transactions. WazirX has already cautioned that its users may not fully recover their funds, especially in cryptocurrency terms. During the court proceedings, the judge asked WazirX to consider revealing any additional assets beyond the crypto tokens currently held but the exchange.
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