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
