- WazirX’s parent company, Zettai Pte Ltd, has received a four-month moratorium following a significant security breach.
- The moratorium, granted by the High Court of Singapore, will enable Zettai to address its substantial liabilities and user concerns.
- Founder Nischal Shetty expressed gratitude for the court’s decision, emphasizing the importance of this period for restructuring and recovery.
WazirX secures crucial four-month moratorium to strategize recovery after a $230 million security breach.
Zettai Pte Ltd Receives High Court Approval for Moratorium
Zettai Pte Ltd, the entity behind the Indian crypto exchange WazirX, has been granted a critical four-month moratorium by the High Court of Singapore. This decision follows a severe exploit in July, which led to a loss of $230 million in cryptocurrency from the exchange. The moratorium aims to provide the necessary time for Zettai to manage its liabilities and ensure user asset recovery effectively.
Details of the Court’s Decision and Conditions
On August 27, Nischal Shetty, Director of Zettai, filed the application for the moratorium, citing the need for “breathing space” to address users’ balances on the platform. Originally, Zettai sought a six-month moratorium but was granted a shorter duration of four months. Despite this, Zettai welcomes the decision as a significant step toward a comprehensive resolution plan.
Security Breach and Subsequent Actions
The exploit, which occurred on July 18, targeted WazirX’s multisignature wallet on the Ethereum network and resulted in the unauthorized transfer of over $230 million in crypto assets. The breach is believed to have been executed by the North Korean Lazarus Group, a state-sponsored hacking organization. Following this, WazirX swiftly paused withdrawals and later halted trading to manage the situation.
Transparency and Accountability Measures
To comply with the court’s conditions, WazirX is committed to transparency and scheduled steps including making its wallet addresses public, addressing user queries raised during the court proceedings, and releasing its financial information. The firm will also ensure that any future votes on court applications will be monitored by impartial individuals to maintain objectivity and fairness.
Ongoing Investigation and Industry Reactions
Blockchain analytics firm Elliptic’s report indicated the involvement of the Lazarus Group in the exploit. Further adding to the complexity, Binance has reiterated that it does not have ownership or operational control over WazirX despite previous agreements. Additionally, Binance has accused Zettai’s directors of making misleading statements regarding their relationship.
Conclusion
As WazirX navigates through this troubled period, the four-month moratorium granted by the High Court of Singapore is a pivotal opportunity for restructuring and resolving the issues at hand. The company remains dedicated to keeping its stakeholders informed and ensuring a fair and efficient resolution process. The crypto community will be watching closely as WazirX works towards recovery and future security improvements.
