WazirX, the Indian crypto exchange that suffered a $230 million hack in July, is actively working to restructure its finances and compensate affected users. In a recent development, a court in Singapore granted the stock exchange a four-month moratorium to complete financial restructuring. In a press release on Thursday, September 26, WazirX stated that the move lays the groundwork for a legally binding resolution to restore users’ crypto balances.
In August, Zettai, the majority shareholder of Singapore-based WazirX, applied for a moratorium in a Singapore court. The moratorium gives struggling companies a court-approved reprieve to come up with their recovery plan. While WazirX initially indicated that it would take six months to restructure its finances, the court only granted a four-month period. It remains uncertain whether this timeline will be extended to accommodate WazirX’s original estimate.
In a press note obtained by Gadgets360, the exchange claimed that the Singapore court recognized WazirX’s active engagement with creditors and the speed in applying for this moratorium.
“As part of the court terms, WazirX will publicly disclose wallet addresses through a court filing, respond to user inquiries made in the courtroom, release financial information, and ensure that future voting for court requests is scrutinized by independent parties,” the note said.
In Singapore, WazirX partnered with financial advisory firm Kroll to support restructuring efforts. The exchange said it is working with its advisors and stakeholders to develop a comprehensive plan that addresses the needs of all parties involved.
Amid heavy criticism and social media backlash, WazirX co-founder and Zettai director Nischal Shetty expressed gratitude to the Singapore court for its latest ruling.
As of September 13, only 441 or 0.02 percent of its 16 million registered user base had agreed to WazirX’s restructuring plan via email.
On July 18, a multi-signature wallet linked to WazirX operated by Liminal Custody was hacked, leading to a loss of over $230 million (approximately Rs. 1,900 crore) and leaving users in the lurch. As a result, cryptocurrency payouts on the platform have been suspended since the incident. Currently, 34 percent of users’ INR funds remain frozen while the investigation is ongoing, but the remaining 66 percent of INR funds can be withdrawn by users.
Meanwhile, there have been reports of an unidentified WazirX hacker laundering stolen funds through software such as Tornado Cash, complicating any possible negotiations to recover the stolen assets.
According to the WazirX team, the timelines for the company’s financial restructuring will remain in place unless a “white knight” investor steps in to provide a capital infusion.