Singapore High Court Grants Temporary Relief After Devastating Hack

WazirX, India’s biggest crypto exchange platform has received a four-month conditional moratorium from the Singapore High Court regarding the effect of the $ 234 million hack that happened on 18th July 2024. The hack that saw a loss of 45% of the exchange’s customer funds has put WazirX in a very sorry state financially. 

This makes it possible for the exchange to exit restructuring for the time being, but under the strict condition that the court has placed.

Court-Imposed Conditions

The court’s ruling put pressure on WazirX to reveal its wallet holdings’ addresses through a legal affidavit. Also, the exchange has to answer users’ questions and prepare its full book of accounts in six weeks. WazirX is also expected to perform any type of further voting on the restructuring plan via an independent system.

This has happened following WazirX having sought a six months suspension after the platform was hit by a hack. Besides legal proceedings, which ended on Thursday, the judge noted that the exchange has acted in good faith to address the problems by seeking help through the legal system.

Fund Recovery Challenges

The hacker behind the hack has already cashed out most of the stolen money, thanks to Tornado Cash. The hacker has only $6 million left in Ether. It has become very hard for WazirX to track and retrieve the stolen assets because of the process of laundering.

However, according to WazirX’s legal advisors, customers cannot expect to get their lost money back in cryptocurrencies. But it is still under pressure to produce solutions to the questions of its users during this period – as the exchange continues to struggle during this turbulent period.

Although for WazirX it is a very long road to recovery, the pause in all cases due to the moratorium decided by the court helps. However, its capacity to rebuild lost trust in users and investors is still doubtful.

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