Singapore court gives WazirX moratorium appeal four months
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 complete its financial restructuring. In a press release on Thursday, September 26, WazirX stated that this move lays the groundwork for a legally binding resolution to restore users’ crypto balances.
In August, Zettai, the Singapore-based majority shareholder in WazirX, filed a request for an extension with a Singapore court. An extension gives struggling companies a court-approved grace period to come up with their recovery plan. While WazirX initially said it would need six months to restructure its finances, the court only granted a four-month period. It is still uncertain whether this timeline will be extended to meet WazirX’s original estimate.
In the press release obtained by Gadgets360, the exchange claims that the Singapore court recognized WazirX’s active engagement with creditors and its swift filing for this moratorium.
“As part of the court’s terms, WazirX will disclose the wallet addresses via a court declaration, respond to user questions posed in court, disclose financial information, and ensure that future voting on court applications is audited by independent parties,” the memo said.
In Singapore, WazirX has partnered with financial advisory firm Kroll to support its restructuring efforts. The exchange said it is working with its advisors and stakeholders to develop a comprehensive plan that addresses the needs of all parties involved.
Amid intense criticism and negative reactions on social media, Nischal Shetty, co-founder of WazirX and managing director of Zettai, expressed his gratitude to the Singapore court for the latest ruling.
As of September 13, only 441 or 0.02 percent of the 16 million registered users had agreed to WazirX’s restructuring plan via email.
On July 18, a multi-signature wallet linked to WazirX and operated by Liminal Custody was hacked, leading to losses of over $230 million (approximately Rs. 1,900 crore) and leaving users in dire straits. As a result, crypto withdrawals on the platform have been suspended since the incident. Currently, 34 percent of users’ INR funds have been frozen while the investigation is underway, but the remaining 66 percent of INR funds are available for withdrawal by users.
Meanwhile, reports have surfaced that the unnamed WazirX hacker is laundering the stolen funds using software like Tornado Cash, complicating any negotiations over the recovery of the stolen assets.
According to the WazirX team, the company’s financial restructuring plan remains in place unless a “white knight” investor steps in and provides a capital injection.
