- Singapore court grants WazirX four-month conditional moratorium.
- The moratorium was reduced from six months to four months.
WazirX, an Indian crypto exchange, has granted a four-month conditional moratorium by the Singapore High Court. Previously, WazirX had filed an application with the Court for a six-month moratorium, followed by the exchange suffering a $234 million exploit in July 2024.
The conditions imposed on the exchange include disclosing its wallet addresses, responding to user questions, and revealing its book of accounts within six weeks.
The judicial commissioner of the Singapore High Court, Kristy Tan, approved the moratorium application by Shetty. This will likely allow him to proceed with the restructuring scheme of the remaining 55% crypto funds of users. Reportedly, 45% of user funds were stolen in the hack.
As per the proposed scheme, 4.4 million users are expected to take a 43-45% hit on their respective portfolios in a socialistic loss-sharing policy. Moreover, the legal advisers at WazirX stated that users are unlikely to receive full compensation in crypto terms.
This disclosure by the team may diminish the user’s expectations of recovering their full holdings. The exchange continues to deal with the financial impact of the exploit. Furthermore, the legal experts analyze the platform’s operations and find ways to compensate users, potentially through alternative means beyond returning the full value of the lost assets.
On the other hand, Binance has recently urged WazirX to take complete responsibility for compensating users affected by the hack. It escapes attempts to share the blame through deflection tactics. Further mentioned, the protection of user funds is the responsibility of any cryptocurrency platform.
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