The recent $234 million hack on WazirX has prompted the embattled crypto platform to enter into an initial 30-day moratorium. This decision was made in light of pending deliberations by Singapore’s High Court on whether to extend the moratorium. CoinSwitch, a rival platform, has announced its intention to pursue legal action to recover approximately $9.6 million in digital assets that are currently trapped on WazirX’s exchange.
Zettai Pte, the Singapore-based company behind WazirX’s operations, filed for the moratorium on August 27, triggering an automatic freeze for 30 days. During this period, the firm will work on drafting a restructuring plan to address the aftermath of the hack. Although WazirX estimates that it will need at least six months to finalize the plan and engage with stakeholders, the company emphasized that the moratorium is crucial for addressing users’ crypto balances and recovering funds.
Under the proposed restructuring, users affected by the hack will receive a portion of the available token assets in proportion to their account balances. Nischal Shetty, WazirX’s co-founder and CEO, highlighted that the timeline for restructuring depends on reaching a consensus with creditors. He stressed the importance of unity in this effort, urging support and collaboration from all parties involved.
In a statement on social media platform X, CoinSwitch disclosed that it has substantial assets, including fiat currency and ERC20 tokens, stuck on WazirX’s platform after the hack. Despite multiple attempts to resolve the issue, the company has been unable to recover the funds and expressed frustration over WazirX’s lack of transparency regarding a complete recovery plan. Consequently, CoinSwitch has announced its decision to pursue legal action to retrieve the funds.
CoinSwitch reassured its users that the affected funds represent less than 1% of its total assets and is utilizing treasury reserves to maintain a 1:1 ratio for user holdings. Despite the potential lawsuit, Shetty remains confident that all users will be treated fairly irrespective of the size of their claims.
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