Some respite for WazirX, Singapore court allows 4-month moratorium on legal action

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In a relief for hacked crypto exchange WazirX, a Singapore Court has granted it a four-month conditional moratorium that will help it restructure its business without getting more legal notices from affected parties.

The respite comes two months after the exchange faced a $230-million cyberattack in one of its multisig wallets, which held about 45 percent of its crypto assets.

While granting the moratorium, the court laid out some conditions. WazirX will have to “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 court noted that from the onset of the proceedings, WazirX has actively engaged with creditors. The court acknowledged WazirX’s prompt response in filing for the moratorium,” WazirX said in a statement.

WazirX founder Nischal Shetty said, "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.”

In its affidavit, WazirX said that was in different stages of talks with 11 global crypto exchanges for a capital infusion and support to bail out of the situation. The exchange has signed non-disclosure agreements (NDAs) with at least three exchanges.