A Singapore court has granted a four-month moratorium to WazirX (CRYPTO:WRX), an Indian cryptocurrency exchange, in response to the company's request for temporary relief.
The court's decision follows a major hack in July that resulted in a loss of $234 million, affecting 45% of its customers' funds.
This moratorium comes with strict conditions, including the requirement for full transparency regarding the exchange’s wallet addresses and financial records.
WazirX must submit a court affidavit detailing all wallet addresses linked to the exchange.
Additionally, the exchange is obligated to release its book of accounts within six weeks and to respond to all user inquiries during this period.
The court has also mandated that any voting on the company's future actions must take place on an independent platform to ensure fairness.
The presiding judge noted that WazirX acted in “good faith” by seeking this moratorium and recognized the company's efforts to protect its creditors amid financial challenges.
Nischal Shetty, WazirX’s founder, defended the filing, stating, “Our immediate filing for the moratorium was a decisive step to ensure the fastest, fairest, creditor-approved, legally binding path to resolution, where creditors have a token choice and potential upside in a bull run.”
Despite these developments, the chances of customer reimbursement in cryptocurrency remain uncertain, according to the company's legal advisers.
In a related matter, on-chain data reveals that the hacker behind the theft is nearing the completion of laundering the stolen funds.
A wallet previously holding $234 million has been reduced to $6 million in Ethereum (CRYPTO:ETH).
The hacker has utilised Tornado Cash (CRYTO:TORN) to obscure transactions, with significant activity noted in September.
At the time of reporting, the WazirX price was $0.1272.