WazirX Secures 4-Month Conditional Moratorium from Singapore Court

Crypto exchange WazirX has secured a four-month moratorium from a Singapore court, subject to several conditions imposed.

Details

• The terms and conditions include:

a) Disclosing the addresses of its wallets via a court affidavit

b) Responding to users' queries

c) Unveiling its accounting books within six weeks

d) Guaranteeing that voting about future prospects will be conducted on an independent platform

Background

• The exchange succumbed to a $230 million hack in July
• The exploit triggered a wave of panic amongst the 16 million users of the platform
• Out of them, around 4.4 million maintained a crypto balance
• The platform has received thousands of withdrawal-related emails and platform messages, alongside a handful of legal notices
• The firm had filed an application with the Singapore High Court for a six-month moratorium

Why should you pay attention?

• The moratorium will provide the firm breathing space to chalk out a restructuring plan, stabilize, work through its issues, and facilitate fund recovery for users
• The WaxirX team has assured that the moratorium will ensure that tokens are distributed to users of the platform in a “fair, legally binding, and creditor-approved way”
• Users of the platform have time and again expressed their frustration with the way the exchange has been handling the situation
• The latest verdict indicates that users will have to continue twiddling their thumbs until the moratorium period concludes

Who said what?

• The judge reviewed the matter on Wednesday and rendered her decision today
• She said the exchange acted on "good faith" by stepping up and seeking a moratorium
• Meanwhile, Nischal Shetty, the Founder of WazirX 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”

Zooming out

• As chalked out in a recent article by blocmates, experts say that the users will unlikely be made whole
• Customers are bound to lose at least 43% of the funds they had in the exchange
• Even in the best-case scenario, they’d recover only anywhere between 55% and 57% of their deposits