Key Points
- The Singapore High Court has approved a four-month conditional moratorium for WazirX to restructure its liabilities following a devastating $230 million exploit in July 2024.
- The hacker behind the attack has nearly finished laundering the stolen funds, using the crypto mixer Tornado Cash to obscure transactions in batches of 5,000 ether ($13 million).
Court Approves Restructuring Period
The High Court of Singapore has granted Zettai Pte Ltd, the Singapore-based holding company behind the Indian cryptocurrency exchange WazirX, a four-month conditional moratorium to address its liabilities. This decision comes in the wake of a massive $230 million exploit that occurred on the platform in July 2024.
WazirX founder Nischal Shetty filed the application on August 27, initially requesting a six-month moratorium. The court’s approval, while shorter than requested, provides the company with crucial “breathing space” to tackle the challenging task of addressing users’ cryptocurrency balances and facilitating their recovery.
Conditions and Commitments
The court’s approval comes with several stringent conditions that WazirX must adhere to during the restructuring period:
- Make its wallet addresses public through a court affidavit
- Respond to user queries raised in the courtroom
- Release its financial information within six weeks
- Ensure future voting for court applications is scrutinized by independent parties
Nischal Shetty expressed gratitude for the court’s decision, stating, “We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring.” He emphasized that the moratorium filing was a strategic move to ensure “the fastest, fairest, creditor-approved, legally binding path to resolution.”
Hacker’s Activities and Fund Recovery Challenges
While WazirX works on its restructuring plans, the entity behind the hack continues to launder the stolen funds. Reports indicate that the hacker is using the crypto mixer Tornado Cash to obscure transactions, moving funds in batches of 5,000 ether (approximately $13 million).
The scale of the theft, which amounts to about 45% of customers’ funds, presents significant challenges for full recovery. WazirX’s legal advisers have previously indicated that customers are unlikely to be made whole in crypto terms, highlighting the complexity of the situation.
Looking Ahead
As WazirX navigates this critical period, the company has committed to providing regular updates on its progress. “We are working diligently with our advisors and stakeholders to develop a comprehensive plan that addresses the needs of parties involved,” the company stated.
The crypto community and affected users will be closely watching WazirX’s efforts in the coming months as it attempts to recover from one of the largest hacks in recent cryptocurrency history.
