Singapore court grants WazirX 4-month moratorium under strict conditions: report

A Singapore court has reportedly granted a four-month moratorium to Indian cryptocurrency exchange WazirX, following the company’s request for a temporary stay.

The moratorium, however, comes with certain conditions, including full transparency of the exchange’s wallet addresses and financial records.

Court conditions

This development comes after WazirX suffered a massive hack in July, which resulted in a loss of $234 million, affecting 45% of its customers’ funds. According to a statement seen by CoinDesk, the conditions include submitting an affidavit to the court revealing all wallet addresses associated with WazirX.

Additionally, the exchange is required to publish its book of accounts within six weeks and respond to all user queries during this period. The court also required that any votes on its future actions be conducted on an independent platform to ensure fairness.

The presiding judge said the exchange acted in “good faith” in requesting the moratorium, recognizing efforts to protect its creditors while navigating a financial crisis. She also encouraged the company to consider disclosing any non-crypto assets.

WazirX, once one of India’s largest cryptocurrency exchanges by trading volume, initially sought a six-month moratorium from the Singapore High Court to manage its turnaround efforts. Nischal Shetty, the company’s founder, also defended its speed in calling for the moratorium.

“Our immediate request for a moratorium was a decisive step in ensuring the quickest, fairest, creditor-approved and legally binding resolution path, where creditors have a symbolic choice and upside potential in the event of an increase. “

Despite steps taken to obtain legal protection and reach a resolution, the chances of customers being reimbursed in cryptocurrency remain slim, according to the company’s legal advisors.

The exploiter is almost finished laundering the stolen funds

In another related development, on-chain data shows that the hacker responsible for the theft has almost completed the process of laundering the stolen funds. The wallet containing the stolen assets was reduced to $6 million in Ethereum (ETH), down from the original $234 million.

Arkham blockchain data indicates that the hacker used privacy service Tornado Cash to move the funds, a platform that hides wallet addresses and transactions.

In August alone, more than $50 million in tokens were funneled through the service, with the hacker increasing its activity in September. The last major transaction took place on September 25, when 3,792 ETH worth around $10 million was transferred to a new wallet.