After the devastating $230 million hack in July, WazirX has been working tirelessly to recover the lost assets and reassure its users. The Indian cryptocurrency exchange had requested a six-month moratorium to handle the crisis, but a Singapore court granted only four months relief, with certain conditions, as reported by Business Standard.
One of the key conditions imposed on WazirX is to disclose the addresses of its wallets in a court affidavit. Additionally, the exchange must address user queries and reveal its financial accounts within six weeks. WazirX is also required to ensure that any decision-making processes regarding its future are conducted on an independent platform.
Despite these stringent conditions, WazirX co-founder Nischal Shetty sees the court’s decision as a positive step. He expressed gratitude for the ruling, stating, “We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery, and restructuring.”
WazirX’s parent company, Zettai, based in Singapore, filed for restructuring on August 23. The moratorium granted by the court will provide temporary relief from legal actions, allowing the firm to proceed with its restructuring efforts.
In a statement shared with Moneycontrol, WazirX emphasized its active engagement with creditors and the prompt filing for a moratorium. Shetty reiterated the company’s commitment to a swift and fair resolution, where creditors have a say in the process.
According to court documents, WazirX is currently in discussions with multiple exchanges and has signed non-disclosure agreements with three potential partners. The exchange is seeking a strategic partnership to inject capital and navigate through the challenging situation.
Despite efforts to recover the stolen assets, WazirX has admitted that its users may not be able to retrieve 100% of their holdings. The exchange recently lifted its withdrawal suspension partially, allowing users to withdraw up to 66% of their INR balances. However, the lack of sufficient reserves prevents users from withdrawing their cryptocurrency holdings.
WazirX initially blamed its wallet service provider, Liminal Custody, for the hack, but an independent review cleared the company of any wrongdoing. The exchange has explored various recovery methods, including a bounty program to incentivize the return of stolen funds.
Meanwhile, the WazirX hacker has nearly completed laundering the stolen assets, with only $6 million worth of Ethereum (ETH) remaining untraceable. The hacker utilized Tornado Cash, a crypto tumbler that obscures the origin of funds.
As WazirX continues its efforts to recover from the hack and rebuild trust with its users, the cryptocurrency industry closely watches the developments unfolding at the embattled exchange.