In a significant development, the Singapore High Court has granted a four-month moratorium to Zettai Pte Ltd, the operator of the WazirX cryptocurrency exchange. This decision, rendered by Judicial Commissioner Kristy Tan, comes in response to the application filed by Nischal Shetty, and aims to provide the exchange with temporary relief following a major cyber heist.
The court’s ruling means that WazirX will be shielded from legal actions for the next four months. This respite is crucial for the exchange, which recently suffered a security breach resulting in the theft of cryptocurrencies worth approximately Rs 2000 crore, affecting 45% of user funds.
Under the terms of the moratorium, WazirX must adhere to specific conditions. The exchange is required to disclose its wallet addresses and financial records through a court affidavit within six weeks. Additionally, WazirX must address user inquiries and conduct voting on an independent platform to maintain transparency during this period.
Nischal Shetty, who has proposed a restructuring plan, anticipates that users will face a loss of 43-45% of their portfolios as part of a collective loss-sharing approach. The restructuring scheme is designed to manage the remaining 55% of user funds.
Despite the court’s intervention, the situation remains dire as the alleged hacker has reportedly siphoned off more than 90% of the stolen cryptocurrency funds. WazirX management is expected to issue an official statement regarding the moratorium and ongoing judicial proceedings in the coming hours.
This story is evolving. Stay tuned to The Crypto Times for the latest updates.
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