Since the $230 million hack in July, WazirX has been working to recover assets and address user concerns. The Indian crypto exchange requested a six-month moratorium to handle the crisis, but a Singapore court granted only a four-month relief with conditions, as reported by Business Standard here.
As part of the conditions, WazirX is required to disclose wallet addresses in a court affidavit, respond to user inquiries, and reveal its financial records within six weeks. Additionally, any voting on the exchange’s future will be conducted independently.
WazirX’s co-founder Nischal Shetty commented on the court’s decision, stating:
“We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring.”
WazirX’s parent company, Singapore-based Zettai, initiated restructuring on Aug 23. The moratorium grants temporary relief from legal proceedings, enabling the firm to restructure.
In a statement to Moneycontrol, WazirX highlighted its commitment to engaging with creditors and prompt action in filing for the moratorium. Shetty added:
“Our immediate filing for the moratorium was a decisive step taken 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.”
According to court records, WazirX is in discussions with 11 exchanges and has signed NDAs with three, aiming to secure a cash infusion and navigate the situation.
Despite enabling users to withdraw up to 66% of their INR balances, WazirX informed users that complete asset recovery is unlikely due to insufficient reserves for crypto token withdrawals.
While blaming its wallet service provider, Liminal Custody, for the hack, WazirX’s claims were refuted by an independent security audit, clearing Liminal of any vulnerabilities. The exchange pursued recovery avenues, including offering bounties.
On a concerning note, the WazirX hacker is close to laundering the stolen assets, with only $6 million Ethereum (ETH) remaining, using Tornado Cash to mask fund origins.
