In the ongoing legal proceedings surrounding the $230 million hack of Indian cryptocurrency exchange WazirX, a Singapore court has extended the existing moratorium until June 6, 2025. This extension grants temporary relief to WazirX’s parent company, Zettai, protecting them from potential legal actions as they focus on restructuring efforts and recovering user funds.
Court Orders Continued Moratorium and Affidavit Filing
The hearing held on May 13, 2025, provided no groundbreaking decisions, but it did result in an extension of the moratorium under order OA 1284. This moratorium, initially established following the hack, has allowed WazirX to temporarily halt legal actions against them, providing some breathing room to address the crisis.
In a development shared with users via an official communication, WazirX confirmed that the court had not yet issued any rulings related to SUM 940. However, the court has directed Zettai to submit additional affidavits by May 23, 2025, which may shed light on the company’s plans moving forward.
Impact of the $230 Million Hack
The hack, which occurred on July 18, 2024, resulted in the theft of $230 million (approximately ₹2000 crores) from WazirX. In the aftermath, the exchange froze over half of its user funds and suspended trading, leaving its users in limbo regarding the recovery of their investments.
Since then, WazirX has been working on a recovery plan and submitted a restructuring proposal to the court in early 2025. With 93.4% user support, the platform outlined plans to reimburse 85% of the frozen funds once court approval is received. Although the company has committed to distributing these funds within 10 days of approval, the latest court hearing has left users still uncertain about when they will receive their refunds.
Crypto Industry Vulnerabilities and Future Outlook
The WazirX hack has underscored the crypto industry’s increasing vulnerability to cyber threats. Just as WazirX grapples with its recovery, the broader crypto community is still reeling from incidents like the $1.4 billion Bybit hack and the recent seizure of $38 million in crypto assets by German authorities from the eXch platform.
Meanwhile, as the WazirX case continues to unfold, attention is also turning to other high-profile legal matters in the crypto world, including the nearing settlement of the XRP lawsuit. However, WazirX users are still awaiting clarity on the recovery process.
Next Steps and User Expectations
Crypto commentator Pushpendra Singh raised concerns about WazirX’s failure to present sufficient evidence during the recent hearing. The court’s order to submit the necessary documentation means users will likely face further delays before they can expect any action on their frozen funds.
As the situation stands, the future of the $230 million hack case remains in flux, with users anxiously awaiting resolution.
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