tl;dr
A Singapore court has granted a four-month moratorium to Indian cryptocurrency exchange WazirX, with conditions including full transparency of the exchange's wallet addresses and financial records. This follows a $234 million hack in July, affecting 45% of customers' funds. WazirX must reveal wallet...
A Singapore court has granted a four-month moratorium to Indian cryptocurrency exchange WazirX, following the company’s request for a temporary reprieve. The moratorium, however, comes with some conditions, including full transparency of the exchange’s wallet addresses and financial records.
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. The conditions include submitting a court affidavit revealing all wallet addresses associated with WazirX. Additionally, the exchange is required to release its book of accounts within six weeks and respond to all users’ queries during this period. The court also mandated that any voting on its future actions must be conducted on an independent platform to ensure fairness.
The presiding judge said the exchange acted in “good faith” by seeking this moratorium, acknowledging the efforts made to protect its creditors while navigating a financial crisis. She 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 its swift action in filing for the moratorium.
Despite the steps made towards seeking legal protection and working towards a resolution, the chances of customers being reimbursed in cryptocurrency remain slim, according to the company’s legal advisers.
In another related development, on-chain data shows that the hacker responsible for the theft has nearly completed the process of laundering the stolen funds. A wallet holding the stolen assets has been reduced to $6 million in Ethereum (ETH), down from the initial $234 million.
Blockchain data from Arkham indicates that the hacker has been using the privacy service Tornado Cash to move the funds, a platform that masks wallet addresses and transactions. The latest major transaction occurred on September 25 when 3,792 ETH worth approximately $10 million was transferred to a new wallet.
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