Wazirx logo seen on a computer screen through a magnifying glass. Source: Dennis - stock.adobe.com

Key Takeaways:

WazirX granted a 4-month moratorium by a Singapore court after a $234 million hack in July.
The court mandates disclosure of wallet addresses, responses to user queries, and submission of financial records.
Full compensation to affected users may not be possible, per WazirX’s legal team.

Indian cryptocurrency exchange WazirX has been granted a four-month moratorium by a Singapore court following a $234 million hack in July, which affected around 45% of its users’ funds.

The court imposed several conditions, such as requiring WazirX to disclose wallet addresses, respond to user queries, and submit its financial records within six weeks.

📢 WazirX Granted Four-Month Moratorium by Singapore Courts

In a crucial decision, the Singapore courts have granted WazirX a four-month moratorium, affirming the company's compliance with the legal and procedural requirements under Section 64 of the IRDA. This decisive court… pic.twitter.com/FGWBlSNmWM
— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) September 26, 2024

Future key decisions must be made through an independent voting platform.

WazirX had initially requested a six-month moratorium, but the court granted four months instead.

The hacker is believed to have laundered most of the stolen funds through Tornado Cash.

WazirX’s legal team suggested that full compensation to customers may not be possible.

The court acknowledged WazirX’s good faith in seeking the moratorium, and founder Nischal Shetty emphasized that the move aimed to provide a fair, legally-binding resolution for creditors, with potential benefits if the market recovers.