A Singapore court has granted WazirX a four-month grace period to disclose its wallet addresses and financial accounts.
Key Contents
- A Singapore court has granted WazirX a four-month grace period to formulate a restructuring plan.
- WazirX will also be required to disclose its full financial accounts within six weeks and conduct a vote on its recovery plan on an independent platform.
- Trading on the exchange is suspended.
A Singapore court has reportedly granted Indian cryptocurrency exchange WazirX a four-month reprieve after the exchange sought relief following its $234 million hack in July. The ruling, announced on September 25, includes several conditions that the exchange must meet, giving WazirX some leeway to restructure and work to compensate affected users.
As per the court’s terms, WazirX must disclose the wallet address through an affidavit and respond to user inquiries. The exchange must also disclose the entire ledger within six weeks and ensure that all votes related to future recovery plans are conducted on an independent platform.
In early September, WazirX filed an application with the Singapore High Court seeking a six-month reprieve, with the aim of giving the company time to stabilize its operations and devise a comprehensive restructuring plan.
WazirX founder Nischal Shetty has pointed the finger at various parties, including custodian Liminal and popular cryptocurrency exchange Binance, for the current situation. According to Shetty, Binance has taken control of a significant portion of WazirX funds, which he claims has hampered the exchange’s ability to compensate users for losses. Binance has flatly denied these claims, claiming it has never owned, operated, or controlled WazirX, and has accused Shetty of trying to shift the blame.
A sigh of relief for WazirX
As part of the court’s stay order, WazirX has secured significant relief. The court has ordered that the exchange’s holding company, Zettai, cannot pass a resolution to liquidate it, nor can any legal proceedings be initiated against it without the court’s approval.
The judge urged WazirX’s legal team to disclose whether the exchange held any other assets besides the stolen tokens. The judge acknowledged that the exchange acted “in good faith” by seeking the moratorium, but noted the importance of transparency in recovery efforts. In a statement following the ruling, WazirX founder Nischal Shetty said:
“Our immediate application for a moratorium was a decisive step taken to ensure that creditors have the fastest, fairest, most creditor-approved, legally binding resolution route possible, with symbolic options and potential upside in a bull market.”
Meanwhile, the hackers behind the July breach are almost done using privacy tools like Tornado Cash to hide transactions and launder the stolen funds. WazirX’s legal counsel has expressed doubts about whether customers will ever get their full cryptocurrency back.
According to a recent X post, the troubled exchange will only begin accepting cryptocurrency withdrawals once the restructuring proposal is approved by creditors and sanctioned by the Singapore High Court, a process that is expected to take at least six months. Until then, trading on WazirX will remain suspended.
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With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of cryptocurrencies for over 4 years. Her deep understanding of the crypto markets has made her a trusted source for analysis and news. Whether analyzing the latest trends or deciphering whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
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