- Singapore court grants WazirX a four-month moratorium to address a $234M hack impact.
- The court mandates WazirX disclose wallet addresses and respond to customer queries publicly.
- WazirX must release financial records within six weeks under strict transparency conditions.
The High Court in Singapore granted WazirX, an Indian cryptocurrency exchange, a four-month judicial stay. This moratorium will allow WazirX to address the impact of a $234 million hack in July that affected 45% of customer funds. To prevent future market manipulation, the court imposed strict conditions, and WazirX must be open with stakeholders.
One condition requires WazirX to disclose its wallet addresses through a court affidavit. The exchange must also answer customer questions raised during the proceedings and release its financial records within six weeks. Any future voting on the exchange’s course of action will be overseen by independent parties to ensure fairness and transparency for all stakeholders.
WazirX requested a six-month moratorium but received only four months under the above-mentioned conditions. The exchange acted quickly to secure this legal protection after the hack, showing its intent to resolve the issue. The court noted WazirX’s proactive engagement with its creditors, recognizing the company’s efforts to find a fair resolution. The ruling aims to balance the interests of creditors and customers affected by the hack.
Read also: WazirX’s Tarnished Reputation: A $230M Hack and a Botched Response
Nischal Shetty, the founder of WazirX, said the exchange is committed to resolving the issue legally. He stated that the moratorium would provide a creditor-approved path toward resolution, which could benefit creditors, especially if there is a future bull run.
Court Acknowledges WazirX’s Good Faith
The judge acknowledged WazirX’s “good faith” actions, appreciating the exchange’s prompt filing for the moratorium and its willingness to make assets public. The judge also encouraged WazirX to consider disclosing any other assets besides its tokens.
WazirX’s legal advisors have indicated that customers may not fully recover their funds. The hacker has been using Tornado Cash to launder the stolen funds, making recovery more difficult. WazirX continues to work with its advisors and stakeholders to create a plan that addresses everyone’s needs.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
