Singapore Court Grants WazirX 4-Month Moratorium Amid $234M Hack Fallout

Following a devastating hack in July that resulted in a loss of $234 million, or 45% of customer funds, a Singapore court has granted Indian cryptocurrency exchange WazirX a four-month conditional moratorium.

The moratorium was granted on Thursday, allowing WazirX to manage its legal obligations and potentially chart a path forward under stringent conditions.

These conditions include revealing the addresses of the exchange’s crypto wallets through a court affidavit, responding to customer queries promptly, disclosing its financial records within six weeks, and ensuring that future decisions on the company’s future direction are conducted via an independent platform.

Breaking: #WazirX granted a four-month moratorium by Singapore Court under these conditions:
• Reveal wallet addresses via court affidavit
• Respond to users' queries
• Disclose book of accounts within six weeks
• Ensure future voting is conducted on an… pic.twitter.com/ivH1Nys9Wj

— Crypto India (@CryptooIndia) September 26, 2024

The moratorium was reduced from WazirX’s original request of six months.

The hack’s impact has severely shaken customer confidence, and WazirX’s legal advisers have already warned that customers are unlikely to recover their funds in cryptocurrency.

Hack Details and Laundering Efforts

The July hack, which saw $234 million in crypto assets stolen, is still under investigation, but authorities have confirmed that the hacker is near completion of laundering the stolen funds.

The hacker reportedly used Tornado Cash, a mixing service that obscures the origins of transactions, making it difficult to track the stolen cryptocurrency.

While WazirX’s legal team attempts to recover from the incident, the court is pushing the company to provide full transparency regarding its assets.

WazirX hacker nearly completes laundering $230M, with just $6M ETH left. Arkham data shows the scale of this breach. Stay alert! 🔒💰#CryptoSecurity #WazirX #Blockchain pic.twitter.com/asJDdydXsp

— Devendra (@KhatiDevendra) September 25, 2024

During the hearing, the judge urged WazirX to disclose any assets it possesses outside of the stolen tokens, which could provide a glimmer of hope for its customers.

Future Steps for WazirX and Customer Concerns

WazirX now faces a critical four-month period to stabilize its operations, comply with the court’s conditions, and potentially reassure its users.

In an insightful conversation with Adv. P.M. Mishra and BT Bazzar, the discussion centered on the importance of trusting #WazirX and the role of the #government in regulating such platforms.

With financial entities like Warix operating in #regulatory #grayareas, it's crucial for… pic.twitter.com/WhNAFkg9LW

— Finlaw Consultancy (@Consult_Finlaw) September 26, 2024

The Singapore court’s decision is significant because it allows WazirX to buy time while working on a restructuring plan.

Key conditions set by the court include:

• Revealing wallet addresses through an affidavit.
• Disclosing financial accounts within six weeks.
• Holding future votes on the exchange’s path forward on an independent platform.

As the moratorium continues, WazirX’s ability to regain its footing will depend on its transparency and cooperation with the court. However, with customer funds still in jeopardy and the stolen assets laundered, the road to recovery appears uncertain.

The cryptocurrency industry will be closely watching how WazirX handles the coming months, especially with its reputation at stake.