Singapore Court Grants WazirX 4-Month Moratorium on Conditions: Details Revealed
In a recent development, a Singapore court has granted a four-month moratorium to WazirX, an Indian cryptocurrency exchange that faced a massive hack in July resulting in the loss of $234 million and affecting 45% of its customers’ funds. The temporary reprieve was requested by the company to navigate through the financial crisis caused by the hack.
Conditions of the Moratorium
The moratorium granted to WazirX comes with specific conditions aimed at ensuring transparency and accountability. One of the key conditions requires the exchange to provide full disclosure of all wallet addresses associated with WazirX, as well as its financial records. In addition, the exchange must release its book of accounts within six weeks and respond to all user queries during this period.
Furthermore, any decision-making process regarding the exchange’s future actions must be conducted on an independent platform to guarantee fairness and impartiality. The presiding judge acknowledged WazirX’s efforts to protect its creditors in good faith and encouraged the company to consider disclosing any non-crypto assets as well.
WazirX’s Response and Recovery Efforts
Despite facing significant challenges following the hack, WazirX has taken swift action to seek legal protection and work towards a resolution. The company’s founder, Nischal Shetty, defended the decision to file for the moratorium as a necessary step to ensure a swift and fair resolution for all parties involved.
“Our immediate filing for the moratorium was a decisive step to ensure the fastest, fairest, creditor-approved, legally binding path to resolution, where creditors have a token choice and potential upside in a bull run,” Shetty stated.
However, the chances of customers being reimbursed in cryptocurrency remain slim, according to the company’s legal advisers. Despite the ongoing efforts to recover the stolen funds, the process of laundering the assets by the hacker responsible for the theft is nearing completion.
Hacker’s Laundering of Stolen Funds
On-chain data shows that the hacker behind the theft has been actively laundering the stolen funds, with a wallet holding the assets reduced to $6 million in Ethereum (ETH) from the initial $234 million. The hacker has been utilizing the privacy service Tornado Cash to move the funds, a platform that obscures wallet addresses and transactions.
In August alone, over $50 million worth of tokens were funneled through the service, with increased activity observed in September. The most recent major transaction occurred on September 25, involving the transfer of 3,792 ETH worth approximately $10 million to a new wallet.
The ongoing laundering of the stolen funds poses a significant challenge to the recovery efforts of WazirX and its customers. Despite the setbacks, the company remains committed to working towards a resolution and ensuring transparency in its operations.
Conclusion
The granting of a four-month moratorium by the Singapore court to WazirX marks a crucial step in the company’s journey towards recovery following the devastating hack in July. While the conditions attached to the moratorium aim to promote transparency and accountability, challenges remain as the hacker continues to launder the stolen funds.
WazirX’s commitment to protecting its creditors and navigating through the financial crisis underscores the importance of swift and decisive action in times of crisis. As the company works towards a resolution, the support of its customers and stakeholders will be vital in rebuilding trust and ensuring a secure environment for cryptocurrency trading.
