WazirX Cryptocurrency Exchange Secures Moratorium Amid Financial Recovery Efforts

WazirX Moratorium Granted

WazirX cryptocurrency exchange has been granted a four-month moratorium by Singapore courts. The decision, made on September 26, 2024, comes as a crucial move in the company's efforts to resolve its financial obligations and secure a sustainable recovery plan following the $235-million theft last month. The moratorium provides WazirX with additional time to engage with its creditors and work on a legally binding resolution to restore the balances of cryptocurrency holders.

Compliance with Legal Standards

The court's decision acknowledges WazirX's compliance with Section 64 of the Insolvency, Restructuring, and Dissolution Act (IRDA), a key factor in securing this legal relief. Since the start of the proceedings, WazirX claims to have taken a proactive stance, maintaining open communication with creditors and acting swiftly to address its financial situation.

Next Steps for WazirX

Under the court’s directives, WazirX has committed to several transparency measures. The company will make public the wallet addresses through a court affidavit, ensuring transparency in handling funds. Additionally, WazirX will respond to user queries raised in the court proceedings, release its financial information, and ensure that any future voting on court applications is overseen by independent third parties. These steps are intended to build trust and foster a more transparent process as the company navigates its restructuring phase.

Founder and CEO of WazirX, Nischal Shetty, expressed appreciation for the court's ruling, stating that it allows the company to focus on developing a swift and creditor-approved recovery plan.