WazirX Secures Four-Month Moratorium After $234 Million Hack
Indian cryptocurrency exchange WazirX has been granted a four-month moratorium by the Singapore High Court following a devastating hack in July that resulted in a loss of $234 million—approximately 45% of customer funds.
The court has set stringent conditions for WazirX, including disclosing the addresses of its wallets through a sworn affidavit, providing a comprehensive response to user inquiries, revealing its book of accounts within six weeks, and ensuring that future voting on the path forward is conducted through an independent platform.
Initially, WazirX had applied for a six-month moratorium, citing the need for stability and time to recover from the attack. The hacker has reportedly nearly completed laundering the stolen funds through Tornado Cash, a service known for obscuring transaction trails.
During the court proceedings, the judge suggested that WazirX consider disclosing details of any assets held outside of its crypto tokens. Despite the setback, the judge acknowledged the exchange’s effort to act in "good faith" by seeking the moratorium as an immediate protective measure.
Nischal Shetty, the founder of WazirX, commented, “Our swift filing for the moratorium was a decisive step to ensure the fastest and fairest resolution, approved by creditors and legally binding, where stakeholders have a potential token choice and upside in a bull run.”
While customers might not be fully compensated in crypto terms, WazirX aims to navigate through these turbulent waters with transparency and a proactive approach to rebuild trust and stability.
