WazirX, the prominent Indian cryptocurrency exchange, has received a four-month moratorium from the High Court of Singapore. This decision comes in response to a significant $230 million exploit that impacted the platform in July. The moratorium is aimed at providing Zettai Pte Ltd, the holding company behind WazirX, with the necessary breathing space to restructure its liabilities.
The application for the moratorium was filed on August 27 by Zettai Director Nischal Shetty. WazirX noted that the court's approval, while shorter than the requested six months, is crucial for addressing users’ cryptocurrency balances and facilitating their recovery. An automatic moratorium of 30 days was put into effect following the application.
In a statement, WazirX founder Nischal Shetty expressed gratitude for the court's decision, emphasizing its importance in focusing on the firm’s path to resolution and restructuring. The company plans to make its wallet addresses public, respond to user queries, release financial information, and ensure independent scrutiny of future court application votes.
The hack occurred on July 18, resulting in the unauthorized transfer of more than $230 million worth of cryptocurrencies. The exploit targeted WazirX's multisig wallet on the Ethereum network, likely due to a private key compromise. Following the incident, WazirX paused withdrawals immediately and halted trading days later.
Blockchain analytics firm Elliptic reported that the attack was linked to the Lazarus Group, a North Korean state-sponsored hacking organization known for high-profile cybercrimes. In the aftermath, Binance, which has had a complicated relationship with WazirX, reiterated that it does not control or operate the exchange.
WazirX continues to monitor the aftermath of the exploit, with the hacker transferring stolen funds to the U.S.-sanctioned crypto mixer Tornado Cash. So far, over 61,500 ether (valued at $161 million) has been sent to the mixer, complicating recovery efforts.
WazirX is committed to providing updates on its progress and is working diligently with advisors and stakeholders to create a comprehensive plan that addresses the needs of all involved parties.
