- The Singapore High Court has mandated WazirX to disclose its wallet addresses, providing a comprehensive affidavit detailing hacked wallets and remaining balances.
- Additionally, WazirX is required to submit its latest management report, including balance sheets, for scrutiny.
- An independent party will be appointed to oversee future voting on the platform’s restructuring plans to ensure transparency and fairness.
WazirX faces a critical juncture as a Singapore High Court ruling necessitates full transparency of its wallet addresses and financials, aiming to restore stakeholder trust after a significant hack.
Singapore High Court Orders WazirX to Reveal Wallet Details
The Singapore High Court granted WazirX a four-month moratorium, contingent upon several critical disclosures. Most prominently, the exchange is ordered to provide an affidavit disclosing its wallet addresses within three weeks. This document must detail both the hacked wallets and those still holding funds. The transparency is intended to facilitate the platform’s restructuring and repayment plans after a $230 million hack compromised around 45% of users’ funds.
Compliance and Financial Transparency
Moreover, in a bid to ensure full accountability, WazirX must also submit its latest management accounts and balance sheet within six weeks. This requirement underscores the importance of financial transparency as WazirX navigates through its restructuring processes. The exchange must also file an extension notice three weeks before the expiration of the moratorium if more time is needed to execute its restructuring strategies.
Independent Oversight and Restructuring Process
To enhance the credibility of WazirX’s restructuring efforts, an independent party will oversee the voting on any future restructuring initiatives. Additionally, a creditor committee will be formed to represent users’ interests. This orderly approach is crucial for building a sustainable recovery path, ensuring that all stakeholders are involved and that their concerns are adequately addressed.
CEO’s Optimistic Outlook Amid Challenges
In a press release, Nischal Shetty, the founder of WazirX, expressed gratitude for the court’s decision, viewing it as a pivotal opportunity to focus on recovery and restructuring. Shetty highlighted the importance of the moratorium in crafting a fair and legally binding resolution path where creditor approval plays a central role. This approach is designed to offer a token choice and potential benefits during a market upswing, underscoring their commitment to recovering users’ funds.
The Path Forward: Scheme of Arrangement
The moratorium allows WazirX to formulate a comprehensive Scheme of Arrangement addressing creditor repayments. The crypto exchange assured that all affected users would be classified equally as unsecured creditors. These users will receive proportional shares of the exchange’s reserve tokens based on their account balances. This restitution plan also includes mechanisms to enhance token recoveries and introduce revenue-generating products. Potential third-party partnerships will be explored to further benefit users, aiming to make them whole through innovative financial strategies.
Conclusion
The Singapore High Court’s ruling imposes stringent disclosure and transparency requirements on WazirX, a necessary step towards regaining user trust and beginning the path to financial recovery. The combination of a detailed restructuring plan, overseen by independent parties and supported by transparent financial reporting, establishes a robust framework for addressing the fallout from the significant hack. As WazirX navigates through this challenging period, the focus remains on equitable resolutions and the implementation of sustainable recovery mechanisms.
