WazirX Gets Conditional, Four-Month Moratorium From Singapore Courts
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.
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.
