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Elena R
Elena R
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Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Sep 26, 2024 06:25 UTC
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WazirX News: Singapore Court Four-Month Relief After $234M Hack
WazirX receives a four-month moratorium from the Singapore High Court following a $234 million hack.
Court conditions require WazirX to reveal wallet addresses, answer user questions, and prepare its full book of accounts.
Recovery challenges include difficulty in tracking stolen assets and uncertainty about customer refunds.
WazirX, India’s biggest crypto exchange, has been granted a four-month conditional moratorium by the Singapore High Court after the $234 million hack on July 18, 2024. The hack, which resulted in a 45% loss of customer funds, has left WazirX in a tough financial situation. The moratorium offers temporary relief, but with strict conditions set by the court.
This makes it possible for the exchange to exit restructuring for the time being, but under the strict condition that the court has placed.
It’s a high-stakes drama. What will happen next? Discover below.
Court’s Conditions for WazirX
Under the court’s ruling, WazirX must disclose its wallet addresses through a legal affidavit. It also has six weeks to respond to user questions and prepare a full set of its accounts. Future votes on any restructuring plans must be handled through an independent system to ensure fairness.
This ruling comes after WazirX sought a six-month suspension following the hack. Legal proceedings concluded last Thursday, with the judge acknowledging that the exchange acted in good faith by seeking help through the courts.
The hacker has already laundered most of the stolen funds using Tornado Cash, leaving only $6 million left in Ether. This has made it very difficult for WazirX to track and recover the stolen assets.
Challenges Ahead!
WazirX’s legal advisors have stated that customers shouldn’t expect to get their lost funds back in crypto. However, the exchange is under pressure to provide solutions to its users during this period as it continues to face challenges.
While the court’s moratorium provides some breathing room, WazirX faces a long road to recovery. Rebuilding trust with its users and investors remains a major hurdle, and it’s unclear if the exchange will be able to regain that confidence.
Will WazirX be able to regain the trust of its users and investors, or will this scandal mark the end of the business? It’s a ticking time bomb. Tell us what you think.
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