WazirX’s founder, Nischal Shetty expressed gratitude for the court’s decision, emphasizing the need for a fair and legally binding resolution process.
A Singapore High Court has imposed a number of requirements on the WazirX exchange following the granting of a four-month moratorium. The moratorium application’s approval paves the way for the exchange to devise a restructuring plan to reimburse clients.
The $130 million hack on the exchange resulted in the theft of around 45 percent of the users’ cash. The data on the blockchain suggests that the hacker is nearing the completion of money laundering.
WazirX To Fulfill These Conditions
Following the issuance of the moratorium order, the court mandated that the Indian cryptocurrency exchange disclose its wallet addresses via a court affidavit within a three-week timeframe. You must include details about the compromised wallets and the exchange’s remaining funds in the affidavit.
Additionally, the platform has three weeks to respond to user questions in the court chat room. In addition, the cryptocurrency exchange is required to submit an affidavit over the next six weeks in order to disclose its most recent management accounts and balance sheet.
The agreement will establish a creditor committee, and independent parties will oversee the voting process for any future restructuring schemes. Furthermore, in the event that the cryptocurrency exchange needs additional time to finish the restructuring process, it is required to submit a notice of extension three weeks prior to the deadline for the moratorium order.
This moratorium order prevents the exchange from making any repayments to its stakeholders and grants it a temporary reprieve. In accordance with the Insolvency, Restructuring, and Dissolution Act, WazirX submitted an application for a moratorium that would last for a period of six months to the High Court of Singapore on August 27.
On the other hand, the court ultimately only awarded a period of four months. “We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery, and restructuring,” Nischal Shetty, the creator of WazirX, stated in a news release.
Our immediate filing for the moratorium was a decisive step to ensure the quickest, fairest, creditor-approved, legally binding path to resolution where creditors have a token choice and potential upside in a bull run.” “This was a step that we took to ensure resolution in the most expedient and fair manner possible.
“The hacker who carried out the WazirX attack on July 18 stole approximately 230 million dollars’ worth of cryptocurrency. Hackers continue to challenge cryptocurrency exchanges. Recently, BingX was hacked, resulting in the theft of USDT and USDC worth around 43 million dollars.
How The Scheme Of Arrangement Will Work
As part of the arrangement, WazirX will work with its creditors to establish a legally binding agreement that will require them to repay their money within a reasonable amount of time.
During the conversation, it became clear that they were already making a concerted effort to collaborate with their advisors and stakeholders in order to build a complete plan that takes into account the requirements of all of the parties involved.
The cryptocurrency exchange made the announcement that they will rank affected users together as unsecured creditors on an equal footing with each other. The exchange will distribute the tokens in reserve to these users based on their balances.
WazirX further stated that they will distribute this money proportionally to the share of all customers’ unsecured claims for their account balances. Additionally, as part of the plan to restructure, the Indian cryptocurrency exchange would develop and implement measures to increase the number of token recoveries.
Moreover, they plan to introduce revenue-generating items and profit-sharing systems, while also exploring the potential to establish partnerships with external entities. These programs will benefit consumers and provide a means by which they can regain their wholeness.
SpotOnChain’s data suggests that the hacker, who stole cash from the exchange, is nearing the completion of money laundering. In the wallet to which the hacker transferred the stolen assets, the hacker only has approximately $3.37 million worth of cryptocurrency in the possession.
