WazirX Receives Moratorium from Singapore High Court

WazirX, India's biggest cryptocurrency exchange platform, has received a four-month conditional moratorium from the Singapore High Court.

This ruling comes after a massive $234 million hack on July 18, 2024. The hack resulted in a crippling loss of 45% of the exchange's customer funds, putting WazirX in a precarious financial situation.

The court's decision allows WazirX to exit restructuring under strict conditions temporarily. The exchange must reveal the addresses of its wallet holdings through a legal affidavit.

Additionally, WazirX is required to answer user questions and prepare its entire book of accounts within six weeks. The court also mandated that further voting on the restructuring plan be conducted via an independent system.

This development follows WazirX's request for a six-month suspension after the hack struck the platform. During the legal proceedings, which concluded on Thursday, the judge acknowledged that WazirX had acted in good faith by seeking assistance through the legal system to address its problems.

Unfortunately, the hacker responsible for the breach has already cashed out most of the stolen funds, primarily using Tornado Cash.

Only $6 million remains in Ether, making it highly challenging for WazirX to track and retrieve the stolen assets due to the laundering process. According to WazirX's legal advisors, customers should expect to keep their lost funds in cryptocurrencies.

However, the exchange remains under pressure to provide solutions and address user concerns during this turbulent period.

"The pause in all cases due to the moratorium decided by the court helps, but WazirX still faces a long road to recovery," said a legal advisor.

While the moratorium offers some respite, WazirX's ability to rebuild lost trust among its users and investors remains to be determined.

The exchange's actions in the coming weeks will be crucial in determining its future stability and reputation in the cryptocurrency market.