Singapore court on Thursday granted a four-month moratorium to embattled crypto firm WazirX, providing temporary relief to the exchange nearly two months after a security breach led to the theft of over $230 million from the platform.
The moratorium comes with conditions from the court.
The crypto exchange is required to make wallet addresses public via a court affidavit, respond to user queries raised in the courtroom, release financial information, and ensure that future voting for court applications is scrutinised by independent parties, as part of the court’s conditions.
“We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery, and restructuring,” said Nischal Shetty, co-founder, WazirX.
WazirX, whose parent company, Zettai, is based in Singapore, applied for restructuring at a Singapore court on August 23.
Earlier this month, crypto exchange WazirX said customers affected by the recent cyber attack would not be able to recover their full funds, even as the firm looks to restructure.
At a virtual press conference earlier this month, the firm’s advisors explained that the company might look to return 55–57 per cent of the capital.
The crypto exchange platform said it was restructuring and, as part of that, it was looking for a white knight to provide capital and pursue partnership and collaboration.
This entails the implementation of revenue-generating products and mechanisms to share profit with users, tracing and recovering stolen crypto assets, and/or allowing users who need liquidity urgently to withdraw crypto assets more quickly and exit restructuring.
The company had blamed its third-party wallet service provider, Liminal Custody, for the security breach.
However, Liminal had denied the allegations.
First Published: Sep 26 2024 | 4:11 PM IST
