Singapore Court Grants Four-Month Conditional Moratorium to WazirX, Asks to Disclose Holdings Beyond Tokens

Author

Jai Pratap

Author

Jai Pratap

About Author

Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

Author Profile

Share

Copied

Last updated: 

September 25, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

A Singapore court has granted a four-month conditional moratorium to the troubled Indian crypto exchange WazirX following a $234 million hack in July.

The court’s decision comes with several stipulations, including the requirement for WazirX to disclose the addresses of its wallets through a court affidavit and to respond promptly to user inquiries.

Additionally, the exchange must provide its financial records within six weeks and ensure that any future voting regarding its operations is conducted on an independent platform.

In an emailed statement to Cryptonews.com, Nischal Shetty, Founder of WazirX said:

“We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring. WazirX will continue to provide updates on our progress and further developments. We are steadfast in our commitment to resolve this matter efficiently and equitably.”

WazirX initially sought a six-month moratorium in light of the breach, which resulted in the loss of approximately 45% of its customers’ funds. WazirX further noted:

“As part of the court’s conditions, WazirX will make wallet addresses public via a court affidavit, respond to user queries raised in the courtroom, release financial information, and ensure future voting for court applications is scrutinized by independent parties.”

Legal representatives for WazirX have indicated that customers may not recover their losses in cryptocurrency. During the court proceedings, the presiding judge encouraged the exchange’s legal team to consider disclosing any assets it holds beyond its current token holdings, noting that WazirX’s initiative to seek a moratorium demonstrated good faith.

WazirX Hacker Launders Most of the Funds Through Tornado Cash

A wallet associated with the funds stolen from WazirX now contains only $6 million in ether (ETH). According to blockchain data from Arkham, the stolen assets are frequently transferred to new wallets before being funneled into the privacy service Tornado Cash.

In August, the hacker funneled over $50 million in tokens to Tornado, with increased activity noted in September. The most recent transaction involved a transfer of 3,792 ETH, valued at approximately $10 million, to a new wallet earlier on Wednesday.