SUMMARY
- A Singapore court has granted WazirX a four-month conditional moratorium to restructure its business following a $230 million cyberattack.
- WazirX must comply with several court conditions, including making wallet addresses public and responding to user queries.
- The exchange is in talks with 11 global crypto exchanges for capital support, having signed NDAs with at least three of them.
In a significant relief for the hacked cryptocurrency exchange WazirX, a Singapore court has granted a four-month conditional moratorium. This legal reprieve will allow WazirX to restructure its operations without the immediate threat of legal notices from affected parties. The decision comes in the wake of a severe cyberattack that occurred two months ago, which resulted in a loss of approximately $230 million from one of its multisig wallets, containing around 45% of the exchange’s crypto assets.
The court has stipulated several conditions for the moratorium. WazirX is required to publicly disclose its wallet addresses through a court affidavit, respond to user inquiries raised during the court proceedings, release detailed financial information, and ensure that future votes on court applications are scrutinized by independent parties.
WazirX has actively engaged with its creditors since the onset of these proceedings, and the court has acknowledged the exchange’s prompt action in seeking the moratorium. WazirX founder Nischal Shetty stated, “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.”
In its affidavit, WazirX indicated that it is in various stages of discussions with 11 global cryptocurrency exchanges for potential capital infusion and support to navigate its current challenges. The exchange has reportedly signed non-disclosure agreements (NDAs) with at least three of these exchanges.
