The Singapore High Court has issued a significant ruling, giving WazirX three weeks to disclose its wallet addresses following a moratorium decision. This comes as part of the conditions surrounding WazirX’s restructuring plan, which aims to provide refunds to affected users. Following a hack on the exchange, approximately 45% of users lost their funds.
WazirX Ordered to Reveal Wallet Addresses
As part of the court’s ruling, WazirX must release the details of the hacked wallet addresses and disclose the remaining funds in its wallets within three weeks through a sworn affidavit. Additionally, the exchange has been ordered to respond to user queries via a court-monitored chatroom during this period. This step is seen as critical in determining the extent of the losses suffered by users and paving the way for a more transparent restructuring process.
Restructuring Plans Underway
WazirX is also required to release its final management accounts and balance sheet via an affidavit within six weeks. The restructuring process will be overseen by independent parties, and a creditors’ committee will be established to monitor the situation. If the exchange requires more time to complete the restructuring process, it must file for an extension at least three weeks before the moratorium period ends.
Founder Nischal Shetty’s Statement
In a press release, WazirX founder Nischal Shetty expressed gratitude for the court’s decision. “We are thankful for the court’s ruling, as it allows us to focus on recovery and restructuring,” Shetty stated. He added, “Our request for the moratorium was a firm step towards providing our creditors with a fast, fair, and legally binding resolution.” Shetty reassured users that WazirX prioritizes security and is taking necessary steps to prevent future incidents.
The hack, which took place on July 18, saw attackers steal approximately $230 million worth of cryptocurrency. WazirX is now focusing on restructuring efforts and creating a binding agreement with creditors to repay debts within a specified timeline. The exchange has also committed to sharing a portion of its reserves with creditors and developing mechanisms to enhance recovery efforts.
Future Steps for WazirX and the Crypto Community
As part of its recovery efforts, WazirX will explore third-party partnerships and revenue-generating products to support users and creditors. The goal is to restore the affected users to their previous financial standing and enhance overall trust in the platform.
This case highlights the ongoing challenges faced by cryptocurrency exchanges in ensuring security and building trust within the community. Comprehensive solutions and user-centric approaches are crucial for addressing these concerns.
