Singapore, Thursday, September 26, 2024-A Singapore court has granted a four-month conditional moratorium to Indian cryptocurrency exchange WazirX, following its $234 million hack in July that compromised 45% of customer funds. The moratorium was granted on Thursday, with specific conditions that require WazirX to disclose wallet addresses, respond to users’ queries, and provide its financial books within six weeks.
WazirX had initially sought a six-month moratorium to manage the aftermath of the hack. The exchange must also ensure any future voting on the company’s decisions is conducted independently.
The hacker responsible for the July breach has nearly laundered the stolen funds using Tornado Cash, a service notorious for obscuring cryptocurrency transactions. Meanwhile, WazirX’s legal advisors have warned that customers may not fully recover their assets in cryptocurrency.
During the court proceedings, the judge commended WazirX for acting in good faith by seeking a moratorium but urged the company to release details of its non-token assets.
WazirX is a popular cryptocurrency exchange based in India and owned by Binance, one of the world’s largest cryptocurrency exchanges.
WazirX offers a platform for trading various cryptocurrencies, including Bitcoin, Ethereum, and Tether.
The exchange has faced regulatory scrutiny in India, with authorities raising concerns about money laundering and other illicit activities.
Despite these challenges, WazirX remains a significant player in the Indian cryptocurrency market.
The hackers exploited a vulnerability in the exchange’s hot wallet, a digital wallet connected to the internet.
