Key Takeaways
- A Singapore court approved a four-month conditional moratorium to hacked Indian crypto exchange WazirX.
- The court asked WazirX to reveal all wallet data and book of accounts in the next 6 weeks.
- WazirX hacker laundered the last batch of ETH Thursday.
Indian cryptocurrency exchange WazirX was granted a conditional four-month moratorium by a Singapore High Court on Thursday.
The Indian crypto exchange was hacked in July, resulting in over $230 million in losses, or about 45% of customers’ funds.
The exchange sought restructuring and a moratorium relief in Singapore, as Zettai, the private firm operating WazirX, is incorporated in the country.
WazirX Given Six Weeks to Comply With Court’s Four Conditions
The conditional moratorium gave the crypto exchange a breather and safeguarded it against legal action for the next four months. However, as part of the moratorium, WazirX must fulfill four conditions to refund 55% of customers’ funds within six weeks:
- Reveal details of crypto wallets holding the exchange’s assets through a court affidavit.
- Publish a public book of WazirX accounts through a court affidavit.
- Address users’ queries and grievances.
- Ensure independent platforms run future voting for court applications.
WazirX filed for a moratorium on Aug. 27 and sought for six months. The WazirX moratorium hearing was led by Kristy Tan, a single-bench judicial commissioner. While Tan granted a four-month moratorium, she asked tough questions that the exchange has refused to answer until now.
The judicial commissioner reportedly asked why WazirX needed four months to distribute 55% of user funds when it could be done in a short period. The court also asked the exchange to form a creditors committee.
What’s Next for WazirX Users?
WazirX will now disclose its wallet details and book of accounts in the coming weeks as part of the restructuring process. For the next step, Zettai will request a creditors’ meeting to seek their approval for the restructuring plan.
The creditors will vote on the proposed plan. However, it will be rejected if it gets less than 50% of the votes. In that case, the users must wait for the WazirX and Binance dispute to end before distributing funds.
The Singapore court will direct the exchange to reimburse 55% of customers if it approves the proposal.
The four-month moratorium might have given WazirX a breather, but it has also given customers some hope of getting at least 55% of their funds back.
WazirX Hacker Launder Majority of the Funds
As WazirX appeared before the Singapore court to apply for a moratorium, the hackers behind the $234 million exploit laundered the last batch of Ethereum (ETH) via Tornado Cash.
The hacker behind the exploit first converted most stolen funds into ETH or ETH-based tokens. After converting and selling meme tokens, the hacker started laundering Ethereum in batches of 5,000 ETH.
The hacker transferred thousands of stolen ETH to a new address and then sent it to the crypto mixing tool Tornado Cash from the new address.
The hacker transferred the last 3,792 ETH ($9.93M) to the new wallet “0xa6e” and sent ETH to Tornado Cash.
While the hackers’ identities remain unknown, many on-chain analysts predicted that the fund movement patterns are similar to those of the North Korean Lazarus group.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
