The Singapore High Court ordered WazirX to disclose its wallet addresses within a four-month moratorium. This decision was made in accordance with the conditions of the moratorium application. The process opens the door to a restructuring plan that will facilitate customer refunds, especially after a hacking incident resulted in nearly 45% of users losing their funds.
WazirX’s Obligation to Disclose Wallet Addresses
The court requested WazirX to share its wallet addresses with the public through a court statement within three weeks of the moratorium order. This statement must include details of the hacked wallet addresses as well as the remaining funds in the exchange’s wallets. Additionally, the platform has three weeks to respond to user inquiries in the court chat room.
Restructuring Process and Plans
The cryptocurrency exchange must disclose the latest management accounts and balance sheet through a statement within six weeks. An independent party will oversee the voting process on future restructuring plans, and a creditor committee will be established. If WazirX requires more time to complete the restructuring process, it must notify the court of an extension three weeks before the moratorium expires.
Statements from WazirX Founder
WazirX founder Nischal Shetty expressed gratitude for the court’s decision, stating that it allows the company to focus on solutions, recovery, and restructuring. Shetty emphasized that applying for the moratorium was a decisive step to ensure creditors have a quick, fair, and legally binding resolution. He added that user safety is a priority and that all necessary measures are being taken to prevent such incidents.
The hacking incident at WazirX occurred on July 18, resulting in the theft of approximately $230 million in cryptocurrency. Hacking attacks on cryptocurrency exchanges continue to be a persistent issue. Recently, a similar hack occurred on the BingX exchange, where $43 million in USDT and USDC were stolen.
Within the restructuring plan, WazirX aims to develop a binding agreement to repay its debts according to a timeline established with creditors. The exchange has stated that it equally values affected users and will distribute its share of the cryptocurrencies in reserves to creditors.
WazirX will also create mechanisms to enhance debt recovery, implement income-generating products, and explore third-party partnership opportunities. This plan aims to benefit users and restore them to their previous status.
