News Flash: WazirX Moratorium Approved by Singapore High Court

As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies, I find myself intrigued by this recent turn of events involving WazirX exchange. The Singapore High Court’s decision to grant Nischal Shetty a moratorium is an interesting twist, offering a temporary reprieve for the beleaguered exchange. However, the fact that the alleged hacker has already made away with a staggering 90% of the stolen funds raises serious concerns about the security measures in place.


In simpler terms, Judge from the High Court in Singapore granted a pause (moratorium) request made by Nischal Shetty regarding Zettai Pte Ltd. This allows the WazirX cryptocurrency exchange around 4 months of respite under specific conditions, following a hack that led to a loss of about 2000 crore Indian Rupees ($279 million USD) worth of cryptocurrencies, which equates to approximately 45% of the user’s funds. This means that WazirX is currently protected from lawsuits for the next four months according to Singapore’s judicial system.

On Thursday morning, Singapore High Court’s Judicial Commissioner Kristy Tan granted Shetty’s moratorium request, paving the way for him to implement his “restructuring plan” with the remaining 55% of our crypto funds. As per Shetty’s plan, approximately 4.4 million users like myself might experience a loss ranging from 43% to 45% in our individual portfolios, following a “socialistic” approach for sharing losses.

Based on reports from WazirX exchange authorities and users, the court has granted a four-month stay with conditions. During this period, the management will disclose their wallet addresses and financial records in a court affidavit within six weeks. They are also expected to address user queries and conduct voting on an independent platform.

In a forthcoming statement, WazirX exchange leadership will provide details about their application for a conditional moratorium being reviewed by authorities. Meanwhile, it’s been reported that over 90% of the approximately Rs 2000 crore in stolen user cryptocurrency funds has already been transferred out, allegedly by the hacker involved in this case.

This is a developing story. Follow The Crypto Times for more updates.

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2024-09-26 08:36