Singapore court grants WazirX 4-month moratorium under strict conditions: report

A Singaporean court has reportedly granted a four-month moratorium to Indian cryptocurrency exchange WazirX, following the company’s request for a temporary restraining order.

The moratorium, however, comes with some conditions, including full transparency of wallet addresses and the exchange’s financial records.

Court conditions

This development comes after WazirX was hit by a massive hack in July, which resulted in the loss of $234 million, affecting 45% of its customers’ funds. According to a statement seen by CoinDesk, the conditions include filing a court affidavit disclosing all wallet addresses associated with WazirX.

In addition, the exchange must publish its ledger within six weeks and respond to all user queries within that period. The court also ordered that any vote on their future actions must be conducted on an independent platform to ensure fairness.

The presiding judge said the exchange acted in “good faith” in seeking that moratorium, acknowledging the efforts made to protect its creditors as it navigated a financial crisis. He also encouraged the company to consider disclosing any non-crypto assets.

Once one of India’s largest crypto exchanges by trading volume, WazirX initially sought a six-month moratorium from the Singapore High Court to manage its recovery efforts. Nischal Shetty, the company’s founder, also defended his swift action to apply for the moratorium.

“Our immediate filing of the moratorium was a decisive step in ensuring the fastest, fairest, creditor-approved and legally binding resolution pathway, where creditors have a symbolic option and a potential upside in a bullfight.”

Despite steps taken to seek legal protection and work toward a resolution, the chances of customers being refunded in cryptocurrency remain slim, according to the company’s legal advisors.

The exploiter is almost done laundering stolen funds

In another related development, on-chain data shows that the hacker responsible for the theft has almost completed the process of laundering the stolen funds. A wallet containing the stolen assets has been reduced to $6 million in Ethereum (ETH), down from an initial $234 million.

Arkham’s Blockchain data indicates that the hacker has been using the privacy service Tornado Cash to move the funds, a platform that masks wallet addresses and transactions.

In August alone, more than $50 million in tokens were funneled through the service, and the hacker ramped up activity in September. The last major transaction occurred on September 25 when 3,792 ETH worth approximately $10 million was transferred to a new wallet.

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