Singapore Court Grants WazirX Moratorium

A Singapore court has granted a four-month conditional moratorium to WazirX, an Indian cryptocurrency exchange that was the subject of a $234 million breach in July.

WazirX must disclose the addresses of its wallets through a court affidavit and respond promptly to user inquiries, as stipulated in the court’s decision.

Furthermore, the exchange must submit its financial records within six weeks and guarantee that any future voting related to its operations is conducted on an independent platform.

Nischal Shetty, the founder of WazirX, made a statement:

“We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring. WazirX will continue to provide updates on our progress and further developments. We are steadfast in our commitment to resolve this matter efficiently and equitably.”

In response to the compromise, which resulted in the loss of approximately 45% of its customers’ funds, WazirX initially requested a six-month moratorium. Additionally, WazirX observed:

“As part of the court’s conditions, WazirX will make wallet addresses public via a court affidavit, respond to user queries raised in the courtroom, release financial information, and ensure future voting for court applications is scrutinized by independent parties.”

WazirX’s legal representatives have stated that consumers are not eligible to recover their losses in cryptocurrency. During the court proceedings, the presiding judge urged the exchange’s legal team to consider disclosing any assets it holds beyond its current token holdings.

He also noted that WazirX’s initiative to seek a moratorium demonstrated good faith.

Most of the funds are laundered by the WazirX hacker through Tornado Cash

The wallet linked to the assets stolen from WazirX now contains only $6 million in ether (ETH). The stolen assets are frequently transferred to new wallets before being routed into the privacy service Tornado Cash, as indicated by blockchain data from Arkham.

The infiltrator transferred more than $50 million in tokens to Tornado in August, and there was an increase in activity in September. On Wednesday, the most recent transaction was the transfer of 3,792 ETH, estimated to be worth $10 million, to a new wallet.