WazirX Gets Conditional, Four-Month Moratorium From Singapore Courts

Zettai Pte., the parent company of WazirX which is facing the impact of a massive $235-million cybertheft, has been granted a conditional, four-month moratorium as it seeks to resolve its current crisis.

Under the moratorium granted, WazirX will have to:

• Make wallet addresses public.

• Respond to user queries raised in the courtroom.

• Release financial information.

• Ensure future voting for court applications is scrutinised by independent parties.

This current moratorium is less than the six-month moratorium it was angling for. A moratorium will protect WazirX from any legal proceedings and prosecution till it finds a way out.

"This action paves the way for the fastest, creditor-approved, and legally binding resolution to restore crypto balances, ensuring a fair and timely outcome for all stakeholders," it said in a statement.

The moratorium has been granted with creditors' views taken into consideration. The company will now enter restructuring, under which, it will distribute remaining token assets to users in a pro-rata manner via crypto and not fiat.

Of the available funds, about 45% will be required as costs for the restructuring. "Only about 55% of money will return to customers. We're in ongoing discussions to generate additional money via revenue-generating products and mechanisms to share profit with users, apart from recovering stolen cryptocurrencies," the company had said earlier.

In July, WazirX suffered a security breach that compromised one of its wallets. The Indian cryptocurrency exchange had announced a $24-million bounty to recover cash lost in a cyber attack.