WazirX to Disclose Wallets in Court Amid 4-Month Moratorium
Singapore Court Orders WazirX to Disclose Wallets After $230M Hack
Court Orders WazirX to Disclose Wallets Amid 4-Month Moratorium
The Singapore High Court has ordered the Indian crypto exchange WazirX to disclose its wallet addresses as part of a four-month moratorium, following a major hack that resulted in the loss of millions in customer funds. This move is intended to support the exchange's restructuring efforts and provide transparency to affected users.
WazirX Hack and Moratorium Order
WazirX, which experienced a $230M Hack on July 18, 2024, has been granted a four-month moratorium by the Singapore High Court. The moratorium halts any immediate repayments to creditors and provides temporary relief for the exchange as it develops a recovery plan. Initially, the exchange had requested a six-month moratorium, but the court granted only four months.
Court's Requirements for WazirX
As part of the moratorium conditions, WazirX must disclose its wallet addresses through a court affidavit within three weeks. The affidavit will include information about the hacked wallets and the remaining assets on the platform. Additionally, WazirX must respond to user queries through a court-monitored chat room within this timeframe.
Within six weeks, WazirX is also required to file its latest management accounts and balance sheet via another affidavit. Independent parties will oversee the restructuring process, including the formation of a creditor committee and the supervision of voting on restructuring schemes.
If more time is needed for the restructuring process, WazirX must file for an extension three weeks before the current moratorium expires.
Restructuring Plan and Path Forward
The restructuring plan involves WazirX developing a binding agreement with its creditors to repay funds within an agreed timeline. The exchange stated that it is working closely with its advisors and stakeholders to create a fair plan that benefits all parties.
Affected users will be treated equally as unsecured creditors and will receive a proportional share of tokens held in WazirX’s reserves. The exchange also plans to increase token recoveries and explore revenue-generating opportunities, including potential third-party partnerships, to maximize user compensation.
Founder’s Statement
WazirX founder Nischal Shetty expressed gratitude for the court's decision, stating that the moratorium allows the exchange to focus on resolution, recovery, and restructuring. He emphasized that the moratorium ensures a fair and legally binding process for all creditors, with the potential for upside during future market improvements.
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