WazirX Granted Moratorium Amidst $234 Million Hack Recovery Efforts

WazirX, India's largest cryptocurrency exchange platform, has received a four-month conditional moratorium from the Singapore High Court following the devastating hack that occurred on July 18, 2024. The hack, which resulted in the loss of 45% of the exchange's customer funds, has had a significant financial impact on the platform.

Court-Imposed Conditions:

The moratorium allows WazirX to temporarily pause restructuring efforts, but under strict conditions set by the court. The exchange is required to:

• Reveal wallet holdings: Provide a legal affidavit detailing the addresses of its wallet holdings.
• Answer user questions: Respond to user inquiries and prepare its full book of accounts within six weeks.
• Conduct independent voting: Perform any necessary voting on the restructuring plan through an independent system.

Challenges in Fund Recovery:

The hacker behind the attack has already laundered a significant portion of the stolen funds using Tornado Cash, making it difficult for WazirX to recover the lost assets. While the exchange's legal advisors have indicated that customers may not receive their lost funds in cryptocurrencies, WazirX remains under pressure to provide solutions and rebuild trust.

Moratorium Provides Temporary Relief:

The moratorium granted by the court offers some respite for WazirX as it navigates the aftermath of the hack. However, the exchange still faces significant challenges in regaining the trust of its users and investors. The road to recovery will be long and arduous, and WazirX's ability to rebuild its reputation will be crucial to its future success.

September  2024, Cryptoniteuae