WazirX Secures Four-Month Moratorium from Singapore Court Amid Financial Restructuring
WazirX's Legal Maneuvering for Financial Recovery
WazirX, the Indian crypto exchange that suffered a $230 million hack in July, is actively working to restructure its finances and compensate affected users. In a recent development, a Singapore court has granted the exchange a four-month moratorium to finalize its financial restructuring.
In August, Zettai, the Singapore-based majority stakeholder in WazirX, filed a moratorium request with a Singapore court. A moratorium grants struggling companies a court-sanctioned grace period to devise their recovery plan. While WazirX initially indicated that it would require six months to restructure its finances, the court has only granted a four-month period.
Insight into WazirX’s Ongoing Challenges
- The Singapore court acknowledged WazirX's active engagement with creditors.
- WazirX must make wallet addresses public via a court affidavit.
- Nischal Shetty expressed gratitude for the recent ruling.
Since the hack, crypto withdrawals on the platform have been suspended, leaving 34 percent of users' INR funds frozen. Meanwhile, reports indicate that the hacker is laundering the stolen funds using Tornado Cash, complicating recovery efforts.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.