Singapore court grants WazirX moratorium to partially refund crypto hack losses

Singapore High Court has granted WazirX a four-month moratorium, allowing it to roll out a restructuring process to partially pay back funds to users affected by the $234-million crypto hack.

As part of the court's conditions, WazirX will make wallet addresses public via a court affidavit, respond to user queries raised in the courtroom, release financial information, and ensure future voting for court applications is scrutinised by independent parties, the company said in a statement.

"We are thankful for the court’s decision, which allows us to focus on our path to resolution, recovery and restructuring," said Nischal Shetty, Founder of WazirX. "Our immediate filing for the moratorium was a decisive step taken to ensure the fastest, fairest, creditor-approved, legally binding path to resolution where creditors have a token choice and potential upside in a bull run.

"WazirX will continue to provide updates on our progress and further developments. We are steadfast in our commitment to resolve this matter efficiently and equitably," the company statement added.

WazirX, one of India's largest cryptocurrency exchanges, suffered a significant hack in July this year, resulting in the theft of over $230 million.

The breach involved the theft of approximately $100 million in Shiba Inu (SHIB) and $52 million in Ethereum (ETH), among other assets. In September, the hacker continued laundering the stolen funds, including transferring $10 million worth of Ethereum.

Following the hack, WazirX implemented restrictions on user withdrawals, allowing only partial access to funds while the company worked through legal and recovery processes.

The company sought legal protection through a moratorium filed in Singapore, which temporarily halted legal actions against them for restructuring their liabilities. Unfortunately, users were informed that they might recover only 55-57% of their assets due to the extent of the hack.