- WazirX said it would take at least six months for the restructuring to occur, after which its users would receive their deposits.
- The exchange maintains that this approach is the best route for all parties involved.
As a researcher with extensive experience in the cryptocurrency market, I find myself both intrigued and saddened by this turn of events involving WazirX and CoinSwitch. The cyberattack on WazirX was a stark reminder of the vulnerabilities inherent in the digital asset space, and its restructuring efforts are a testament to the resilience of this industry.
On August 27, Indian cryptocurrency exchange WazirX, owned by Zettai Pte (registered in Singapore), applied for a moratorium at the Singapore High Court. This action is being taken as the platform reorganizes its debts under the Singapore Restructuring Agreement, following a hacking incident in July where over $230 million was stolen.
If the court approves the moratorium, it would provide WazirX with some time to adjust while Zettai works on its restructuring plan. This approach is considered the most effective way to manage users’ cryptocurrency holdings on the platform and help users recover their investments. Following this filing, WazirX will automatically receive a 30-day pause as the court considers granting their restructuring petition. The court has not yet set a date for the hearing on the restructuring matter.
In addition, the announcement clarified that the reorganization would be advantageous to users who are currently unable to access their funds. Essentially, this means that any losses resulting from the cyberattack will be distributed evenly among equivalent users, acting as unsecured creditors. Each user will receive a portion of the remaining token assets on the platform, relative to their share of all users’ unsecured claims for account balances. WazirX emphasized that this restructuring represents the most effective path forward for its users, as addressing crypto balances through other methods might involve uncertain risks and durations.
CoinSwitch Decides to Take Legal Action Against WazirX
In response to WazirX seeking a moratorium, crypto platform CoinSwitch – holding approximately $9.6 million on the exchange – announced they would take legal measures to retrieve their funds. Currently, the 30-day moratorium given to WazirX shields it from CoinSwitch’s legal action. This protection could potentially last up to six months, should the court decide in favor of an extension.
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2024-08-29 13:09